Rongsheng to build 20 Suezmaxes for Global Union Shipping

8 December 2011 (Last Updated December 8th, 2011 18:30)

China Rongsheng Heavy Industries has received an order from Global Union Shipping to build at 20 157,000dwt Suezmax tankers.

China Rongsheng Heavy Industries has received an order from Global Union Shipping to build 20 157,000dwt suezmax tankers.

The order from Global Union Shipping includes a firm order for ten tankers and options to build another ten similar vessels.

The suezmaxes will have a length of 274.5m, breadth of 48m and scantling draught of 17m.

The vessels, which will be based on the company’s 156,000dwt Suezmax design, are scheduled to be delivered between 2013 and 2014.

This year the shipbuilder has received orders for more than 40 vessels worth over $2bn in total and since its establishment it has delivered about 30 Suezmax tankers.

China Rongsheng Heavy Industries CEO and executive director Chen Qiang said the new order not only increases the group’s orderbook of shipbuilding segment, but also consolidates its leading position in the global Suezmax shipbuilding market.

"China Rongsheng Heavy Industries has managed to secure a series of new shipbuilding orders despite unfavourable market conditions," Qiang said.

In August this year the company received a $220m syndicated loan from the Export-Import Bank of China and Paris-based Credit Agricole Corporation and Investment Bank to develop its Jiangsu facility into a world-class shipbuilding and offshore engineering base.

The Chinese shipbuilder also planned to use the fund to complement its working capital, implement foreign exchange risk measures and lower financing costs.

In the same month it had secured a credit of 28bn yuan ($4.4bn) from the Agricultural Bank of China (ABC) in Nanjing under a Bank-Enterprise Comprehensive Strategic Cooperation Agreement, which is expected to provide strong capital for its future development.

ABC Jiangsu Branch will extend a loan of 20bn yuan ($3.12bn) to Jiangsu Rongsheng Heavy Industries, while ABC Anhui Branch will grant 8bn yuan ($1.25bn) to Hefei Rongan Power Machinery and Rongsheng Machinery.

The company said that the credit will be mainly used as a capital loan, buyer credit and foreign exchange service.