TORM buys seven LR1 tankers for $233 million

Danish tanker company TORM has entered into agreements to acquire a total of seven 2011-2013 built LR1 vessels.

Illustration; Image credit TORM

The company will spend $233 million on the acquisition.

According to TORM, all the vessels are built at renowned Korean and Chinese shipyards.

The tankers are expected to be delivered no later than 30 April 2023 and are expected to be financed by sale- and leaseback agreements with an unnamed Chinese financial institution.

The transactions will increase TORM’s total fleet to 85 vessels on a fully delivered basis.

TORM has set a new goal to achieve a 40 percent CO2 emission reduction by 2025 — five years ahead of the previous goal.

As explained, the accelerated target is possible thanks to the integrated One TORM platform, where the Danish company controls the whole value chain of its business and operations.

The company’s efforts will include activities such as hull painting, maintenance, connected machinery, and connected vessels to achieve fuel savings and cut emissions. As for the long term, the company has the ambition to reach zero CO2 emissions from operating its fleet in 2050.

In August 2022, TORM took majority ownership in compatriot scrubber supplier ME Production (MEP).

The company bought a 75% ownership stake in the company from the owner and founder, Jens Peter Faldt, who retained the remaining 25% ownership.

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The company has reached a total of 55 installed scrubbers out of 68 planned across the fleet, based on the Q3 2022 business results report.