China Shipping Development Co said on Friday it would buy four very large ore carriers (VLOCs) from Chinese shipbuilders for a total of $470 million.
Each vessel will have capacity of 300,000 dead weight tonnes. The company, one of China's biggest shippers, said the purchase would be funded through bank loans and internal financial resources.
Sky-high freight rates have spurred Chinese shippers to order ore carriers, while some steel mills have bought ships to reduce their cost of imports.
The company also plans to order ten 57,300-tonne bulk cargo ships for a total of 2.85 billion yuan, from China Shipping Industry (Jiangsu) Co Ltd, a wholly owned subsidiary of China Shipping (Group) Co which also controls China Shipping Development.
The bulk cargo ships, aimed at reinforcing the company's domination of coal transportation along the coast, will be delivered between 2011 and 2012, China Shipping said.
The company's Shanghai stock rose 8 percent this month to end at 33.58 yuan per share on Friday, while its Hong Kong-listed shares fell 11 percent to end at HK$19.02 ($2.4). ($1=7.369 Yuan) ($1=7.798 HK$) (Reporting by Rujun Shen; Editing by Anne Marie Roantree)
Each vessel will have capacity of 300,000 dead weight tonnes. The company, one of China's biggest shippers, said the purchase would be funded through bank loans and internal financial resources.
Sky-high freight rates have spurred Chinese shippers to order ore carriers, while some steel mills have bought ships to reduce their cost of imports.
The company also plans to order ten 57,300-tonne bulk cargo ships for a total of 2.85 billion yuan, from China Shipping Industry (Jiangsu) Co Ltd, a wholly owned subsidiary of China Shipping (Group) Co which also controls China Shipping Development.
The bulk cargo ships, aimed at reinforcing the company's domination of coal transportation along the coast, will be delivered between 2011 and 2012, China Shipping said.
The company's Shanghai stock rose 8 percent this month to end at 33.58 yuan per share on Friday, while its Hong Kong-listed shares fell 11 percent to end at HK$19.02 ($2.4). ($1=7.369 Yuan) ($1=7.798 HK$) (Reporting by Rujun Shen; Editing by Anne Marie Roantree)