COSCO subsidiary bags $256m in contracts

Singapore: COSCO Corp (Singapore) - through 51% owned Cosco Shipyard Group (CSG) - has won newbuilding and conversion contracts worth $256.2m, reports the Business Times Singapore. 'We are glad to receive further votes of confidence from our repeat and new customers from across the globe despite the current economic uncertainties,' said vice-chairman and president Jiang Lijun. 'In light of high input costs, our group will continue to sharpen our focus on getting more high-value jobs to better optimise the returns from our expanding capacities.'

The newbuilding contracts, its first new orders since July, were awarded by a German customer to CSG's subsidiary, Cosco Dalian Shipyard, which will build two 80,000 dwt Kamsarmax bulk carriers for a total contract value of $108m. The contracts were awarded by various customers from the US, China, Hong Kong, India and Italy.

Cosco said the first 30% instalment payments for the contracts have been received, and the two vessels are scheduled for delivery in 2010 and 2011 respectively.

The other orders were nine conversion contracts valued at $148.2m, which CSG secured through subsidiaries Cosco Nantong Shipyard, Cosco Dalian Shipyard, Cosco Zhoushan Shipyard and Cosco Guangdong Shipyard.

They comprise one oil tanker-to-FPSO conversion from a repeat customer valued at $60m, one forward hull conversion worth $21.7m, and seven oil tanker-to-bulk carrier conversions totalling $66.5m. The projects are slated for progressive completion by the fourth quarter of next year.  (24/09/08)