Stolt seals Chinese joint venture deal
Norway’s Stolt Nielsen group has announced that its wholly owned subsidiary, Stolthaven Terminals BV, has signed a partnership agreement with CITIC Daxie Development Co in Ningbo, China to establish a joint venture to design, construct, own and operate a state-of-the-art chemical and oil products terminal on Daxie Island. Stolthaven and CITIC Daxie Development will each own 50% of the newly formed joint venture company, Stolthaven Ningbo Ltd. The initial phase of development is anticipated to include the construction of 23 storage tanks, with a total capacity of 204,000 cubic meters at a total estimated investment of US$44m. Stolthaven's share of the initial investment is US$22m. The terminal is expected to be operational in 2008. "Ningbo serves the East China region, including the cities of Shanghai, Jiangsu and Zhejiang. It has an area of 800,000 square kilometers and a population of over 370 million," said Walter E. Wattenbergh, Managing Director of Stolthaven Terminals BV. "This new terminal facility offers natural deep water berths and will serve as an important gateway to the region, where economic growth and industrial expansion are driving increased demand for petroleum products, petrochemical products and fine chemicals."