China Shipbuilding Group scores $4.2bn worth of new contracts

China Shipbuilding Group scores $4.2bn worth of new contracts

China Shipbuilding Group, the new shipbuilding conglomerate merged by the two largest Chinese state-run shipbuilders CSSC and CSIC, has had a remarkable debut show at Marintec China in Shanghai, announcing RMB30bn worth ($4.2bn) of new contracts, which Splash believes is the largest set of newbuild orders ever won by a single entity at any shipping exhibition in the world.

The new contracts are made up of a slew of newbuilding contracts and financing contracts.

Dalian Shipbuilding entered into a contract with China Merchants for the construction of four VLCCs.

Waigaoqiao Shipbuilding secured a series of newcastlemax bulk carrier projects including a 2+2 order from Eastern Pacific Shipping and another 2+2 order from ICBC Leasing.

Guangzhou Shipyard International has been awarded a contract by Stena Bulk for two 50,000 dwt methanol carriers plus options for another two, while it also received an order from Eastern Pacific Shipping for the construction of 2+2 LNG dual fuelled suezmax tankers.

Hudong Zhonghua Shipbuilding secured a contract from MOL for the construction of an 18,600 cu m LNG bunkering vessel.

Jiangnan Shipyard clinched newbuilding contracts for two VLECs with Pacific Gas, and four VLGCs with Sino Gas. It also secured contracts for two 22,000 cu m LEGs from Petredec as well as one 3,600 ceu car carrier with UECC.

Qingdao Beihai Shipbuiding signed two newcastlemax bulk carriers with CSSC Shipping while Chengxi Shipyard secured a contract from CDB Leasing for two post-panamax bulk carriers.

Chongqing Chuandong Shipbuilding was awarded a contract by Cosco for two 13,800 dwt chemical tankers.

CSSC Shipping entered into a financial leasing contract with Golar LNG for an FSRU conversion project and it also inked a financing deal with Sino Gas for four 86,000 cu m VLGCs, as well as a financing deal with DBS bank for a VLCC.

Additionally, CSSC Shipping signed a joint investment agreement with Navig8 for 2+2 dual fuel LR2 tankers and a charter agreement with Shandong Shipping for two newcastlemax bulkers.

Beijing unveiled China Shipbuilding Group at the end of November amid the ongoing merger process of CSSC and CSIC, twenty years after they were split apart.

The merger is expected to create one of the largest shipbuilders in the world with $112bn of assets and 310,000 workers.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.

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