Shanghai: Odfjell Terminals has signed an agreement to enter into a joint venture with the Founder Group to become 50/50 partners for the development of a petrochemical tank terminal in Quanzhou in Fujian province.
Odfjell Terminals will acquire from the Founder Group a 50% equity share in the existing Fujian Fangtong Terminals, including the land and an existing jetty at a price of $21m. The purpose is to construct a new tank terminal that Odfjell will manage and operate.
The new terminal is to be located in the Quangang Industrial Zone at the mainland side of the Taiwan Strait, at the south side of Meizhou Bay.
The technical design review and engineering scope are in progress. Basic design is planned to be completed and ready for project tender by end of 2013. The planned total investment in the terminal is $137m.
The future Odfjell Terminals Fujian (Quanzhou) has 14.8 ha of available land, making possible the construction of 184,000 cu m of total storage capacity, supported by two jetties (5,000 dwt and 100,000 dwt). In addition, the new joint venture will have the option to acquire an additional 23 ha of adjacent land to expand the facility's storage capacity by an estimated 400,000 cu m. Odfjell Terminals Fujian (Quanzhou) is planned to be in operation by the start of 2016.
"We are pleased to announce that Odfjell Terminals is embarking on another large tank terminal project in China, adding to its two existing terminals and the new terminal already under construction in Tianjin," said Jan Hammer, ceo and president at Odfjell, adding: "We have found a very solid and reliable partner for this project in the Founder Group, which is a corporation owned by the Peking University in China".
The transaction will be consummated through Odfjell Terminals (China), a subsidiary of Odfjell Terminals AS, which is a joint venture Company owned 51% by Odfjell SE and 49% by Lindsay Goldberg. [27/06/13]
