Jiangsu Rongsheng Heavy Industries has confirmed it has sealed a deal with Oman Shipping for four very large ore carriers.
Jiangsu Rongsheng president Chen Qiang confirmed the order for four 400,000 dwt VLOCs and said the two companies would ink the contract on July 10.
Mr Chen told reporters the newbuildings will be delivered between 2011 and 2012 and the value of the contract is close to $500m. Oman officials had previously been reported as saying the order was worth $484m.
The contract is to be the second-largest newbuilding order for the Chinese shipbuilding industry this year after a 30-bulker order was placed at Zhoushan Jinhaiwan Shipyard by Grand China Logistics.
Last year Brazilian mining company Vale contracted Jiangsu Rongsheng to build 12 400,000 dwt very large ore carriers.
The four VLOCs being ordered by Oman Shipping are destined for long-term contracts with Vale.
Jiangsu Rongsheng was established in 2005 with a total investment of Yuan12bn ($1.8bn). The company’s orderbook reached 5.4m dwt in 2008 and it has become one of the largest Chinese private-owned shipbuilders, Mr Chen said.
Speaking about the shipbuilder’s long-term strategy, he said that the company aimed to increase its exposure in the offshore market.
“The company has earmarked about Yuan5bn for the development of the offshore segment. I hope that the offshore business will account for 40% total revenue,” he said.
Jiangsu Rongsheng postponed its planned listing on the Hong Kong stock exchange in the first quarter of the year and Mr Chen said the initial public offering would be resumed when the business environment recovers.
“We can wait because the company does not have any financial stress. The listing will be carried out at the end of this year or early 2010. It is all depends on the market conditions,” he said.
Jiangsu Rongsheng president Chen Qiang confirmed the order for four 400,000 dwt VLOCs and said the two companies would ink the contract on July 10.
Mr Chen told reporters the newbuildings will be delivered between 2011 and 2012 and the value of the contract is close to $500m. Oman officials had previously been reported as saying the order was worth $484m.
The contract is to be the second-largest newbuilding order for the Chinese shipbuilding industry this year after a 30-bulker order was placed at Zhoushan Jinhaiwan Shipyard by Grand China Logistics.
Last year Brazilian mining company Vale contracted Jiangsu Rongsheng to build 12 400,000 dwt very large ore carriers.
The four VLOCs being ordered by Oman Shipping are destined for long-term contracts with Vale.
Jiangsu Rongsheng was established in 2005 with a total investment of Yuan12bn ($1.8bn). The company’s orderbook reached 5.4m dwt in 2008 and it has become one of the largest Chinese private-owned shipbuilders, Mr Chen said.
Speaking about the shipbuilder’s long-term strategy, he said that the company aimed to increase its exposure in the offshore market.
“The company has earmarked about Yuan5bn for the development of the offshore segment. I hope that the offshore business will account for 40% total revenue,” he said.
Jiangsu Rongsheng postponed its planned listing on the Hong Kong stock exchange in the first quarter of the year and Mr Chen said the initial public offering would be resumed when the business environment recovers.
“We can wait because the company does not have any financial stress. The listing will be carried out at the end of this year or early 2010. It is all depends on the market conditions,” he said.