Cosco Shipping Specialized Carriers has exercised an option to build another four wood-pulp carriers at a group affiliate for trade requirement, according to the Shanghai-listed company.
Last November, the company booked five firm 62,000-dwt vessels at CNY 232.6m ($33.5m) each at Cosco Shipping Heavy Industries’ Dalian yard, with an option for another four.
Cosco Specialized Carriers on Monday announced the option was exercised ahead of its expiration date on 7 March.
“To realise our development strategy and harness the trade requirement for wood pulp globally, we decide to pick up the option for the four ships,” the company said.
China is the world’s largest importer of wood pulp. According to customs data, China imported 24.8 million tonnes of wood pulp in 2018, up 4.5% year-on-year.
The nine vessels will be delivered between the end of 2019 and 2021. Cosco Specialized Carriers and Cosco Shipping Heavy Industries are both controlled by state conglomerate China Cosco Shipping.
Cosco Specialized Carriers, the specialised shipping arm of Cosco Shipping, recorded net profits of CNY 129m on revenues of CNY 5.51bn during January-September 2018. In the same period of 2017, the company posted net profits of CNY 162m on revenues of CNY 4.97bn.
The company owns a diverse fleet of 121 multipurpose, heavylifting, semi-submersible vessels as well as wood-pulp and car carriers.
