Dalian Shipbuilding Industry Corporation (DSIC) has announced an order win for two 319,000 dwt VLCCs and five 72,000 dwt product tankers from Cosco Dalian, the tanker shipping arm of China Cosco Group.

The newbuildings will be designed to feature fuel saving and energy efficient technology, according to DSIC. Financial details of the deal were not disclosed.

The new orders placed by China Cosco followed the Chinese government’s recent announcement that the scrap-and-build policy’s deadline has been extended to 31 December 2017 from 31 December 2015.

State-owned firms such as China Cosco has already benefitted from receiving subsidies under the policy as it sends its older tonnage to the scrapyard and orders new ones for replacement.