China Rongsheng Wins China Rongsheng Wins Order for up to Six Very Large Ore Carriers

2014-01-02

China Rongsheng Heavy Industries Group Holdings Ltd. (1101.HK) said Tuesday that it has won an order for up to six very large ore carriers from Hong Kong-based shipowner Ocean Line Holdings Ltd.

The news comes after a statement earlier this month from the struggling shipbuilder warning that it would incur a "substantial" net loss in 2013.

Rongsheng said it would deliver the ships beginning in 2015. Each vessel will have a capacity of 250,000 deadweight tons.

The order is the first since the company secured orders in the first half of the year for two capesize carriers each with a capacity of 180,000 deadweight tons.

Ocean Line Holdings was not immediately available for comment.

A spokesman for Rongsheng said the latest order consisted of three firm vessel purchases with an option to buy three more, adding that the contract signing was completed on Dec. 28. The company did not disclose the value of the deal.

The current market price for such large ships used for transporting iron ore is around $60 million.

Source from : Wall Street Journal

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