Torm joins China-based scrubber joint venture

Torm joins China-based scrubber joint venture

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.

 

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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