China: RSHI to Hand Over 12 VLOCs to Vale This Year

China Rongsheng Heavy Industries Group Holdings Ltd. has announced its intention to deliver this year the bulk of a dozen supersized vessels ordered by Brazilian miner Vale S.A. (VALE). According to Rongsheng Chief Executive, Chen Qiang, the company’s plan incorporates delivery of two supersized vessels to Vale within the next two months.

All, but one of the remaining super-vessels, are scheduled to be delivered by the end of the year. The final delivery is expected to take place in 2013.

The Valemax vessels, also known as “very large ore carriers” or VLOCs, have a capacity of 400,000 deadweight tons. These vessels can help the Brazilian miner to reduce its shipping costs to China.

Chen said that the company, which accounts for the China’s biggest non state-owned shipbuilder by order book, received a total of US$1.8 billion in new orders in 2011 and looks forward to securing more than that this year.

[mappress]

Shipbuilding Tribune Staff, March 20, 2012; Image: rshi