COSCO Shipping to Build 10 Multi-purpose Vessels
COSCO Shipping Co., Ltd. (SHSE: 600428) has lately won an order of ten 27,000-tonnage new-type multi-purpose vessels from CSSC Guangzhou Huangpu Shipbuilding Co., Ltd. and Taizhou Kouan Shipbuilding Co., Ltd., and total production costs are estimated at USD 310 million or so. It is the Shanghai-listed shipbuilder's biggest single investment project since its establishment, and even the largest multi-purpose and special ship investment project around the world since the financial turmoil broke out in 2008.
These products are scheduled to be delivered to the two buyers that are both subsidiaries of China State Shipbuilding Corporation (CSSC) from June 2011.
In the face of high ship prices and low freights, COSCO Shipping dares to create such new-type 27,000-tonnage multi-purpose vessels featured with high profitability. Besides, a sufficient cash flow can firm its intention of such a mass production.
Based in the southern Chinese city of Guangzhou, Guangdong Province, the shipbuilder owns a total working capital of CNY 2.293 billion now.