CSSC Huangpu Wenchong to build four cargo vessels for China COSCO

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.

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.