Denmark’s Torm becomes the latest owner to invest in a scrubber manufacturer ahead of 2020’s global sulphur cap.
The tanker owner will hold a 27.5% stake in a new joint venture with scrubber manufacturer ME Production and China’s state-backed Guangzhou Shipyard International (GSI). The joint venture, ME Production China, will manufacture and install scrubbers in China and deliver them to owners around the world for both newbuildings and retrofitted vessels.
“Our long-standing relationships with GSI and ME Production helped to facilitate this unique joint venture at a time when demand for scrubbers is expected to increase significantly. This strategic move provides us with a substantial economic interest in a venture that has the potential to be a large-scale international scrubber manufacturer. It will also result in Torm obtaining attractive prices for the scrubber investments that already have a short payback time,” said executive director of Torm Jacob Meldgaard.
Torm has ordered a total of 16 scrubbers with ME Production China and signed a letter of intent for additional 18 scrubbers with the new joint venture. With these orders, Torm has committed scrubbers on up to half its fleet.