China: CIC Jiangsu Shipyard Bags USD 53.2 Million Shipbuilding Contract

China Shipping Development Company has signed, on Friday, a new contract for the construction of one 110,000 DWT oil tanker. The contract was signed between China Shipping Development Company and its subsidiary Jiangsu shipyard.

The delivery of the vessel is scheduled for September 30, 2013. The approx. value of the contract is USD 53.28 million.

China Shipping official said “In view of the reasonable cost of constructing the tanker, the directors are of the view that the construction and ownership of the tanker is low risk, efficient, and will increase the competitiveness of the group in the shipping market,”

This contract should be financed by bank borrowings and internal financial resources in 80% to 20% ratio.

CIC Jiangsu Shipyard has a production area that covers 4,200 acres with waterfront length of 3500 meters. The shipyard is mainly engaged in manufacturing all kinds of medium and large-sized vessels, water floating devices and offshore engineering equipments. The shipyard was constructed based on the standard of being the leading company in the domestic country and the first-class shipbuilding enterprise in the world. The shipbuilding base was founded and started operation on April 28, 2007, planned to finish all the constructions and put into full operation in 2010 with annual production capacity of 3.5 million DWT. Presently the company’s order-book has over 60 ships and the production planning has been arranged till 2013. There are more than 10 ships which have been delivered and classified by ABS, BV, CCS, DNV, GL, LR and other major classification societies.

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Shipbuilding Tribune Staff, January 17, 2012; Image: csgcic