Cargo Business Techwire

Friday, May 23, 2014

China Rongsheng Heavy Industries snags $1B order

China Rongsheng Heavy Industries Group, one of the largest shipbuilders in the nation, signed a $1 billion contract with an unnamed European ship owner for the construction of up to 36 bulk carriers over the next three years.

Of the 36, 24 are confirmed orders and 12 are optional ships the ship owner could buy at a fixed price in the future to mitigate unpredictable spikes in ship prices.

Eighteen of the 24 confirmed orders were signed by Rongsheng last year at a lower price, but the terms were recently renegotiated at a higher order price to reflect the strong dry bulk shipping market.

Rongsheng did not to disclose the identity of the buyer.

For more of the South China Morning News story: scmp.com