CSSC Huangpu Wenchong Shipbuilding will build four bulk carriers for Prosperity Investment, a wholly-owned unit of China COSCO Holdings.
CSSC will build, launch, equip and complete the four vessels at its shipyard.
Go deeper with GlobalData
Each of the 64,000dwt bulk vessels will be built at a cost of $27m, bringing the total transaction amount to $108m.
The deal is the first for China COSCO in five years and is part of its plan to upgrade and expand its fleet and to take advantage of the government-led cash subsidy scheme to dispose of old vessels.
Delivery of the four dry-bulk vessels is expected between 2015 and 2017.
In another development, the company’s board has approved a plan to purchase five 308,000dwt very large crude carriers (VLCC).
The company ordered the VLCCs from Dalian Shipbuilding Industry, of the China Shipbuilding Industry.
China COSCO reported a loss of $1.56bn in 2012 and $1.7bn in 2011. Planned asset sales are expected to reverse the 2013 results.
