Denmark-based shipping company TORM has signed a deal to purchase four new fuel-efficient MR resale vessels from China's Guangzhou Shipyard International (GSI).
The new vessels are scheduled to be delivered by 2019.
The deal also includes an option to buy up to four additional MR vessels, with expected delivery planned in late 2019.
TORM executive director Jacob Meldgaard said: “The agreement also includes an option for an additional four high-specification MR vessels.
“Given the market outlook, we see this as an attractive way to grow and renew our fleet at a cyclical good point in time.”
TORM has already received a firm commitment from Danish Ship Finance to fund the company's acquisition of the ships by offering 65% of the purchase price.
TORM’s current fleet includes 20 GSI-developed vessels, including four LR2 tankers that are currently under construction
The newly signed deal has brought TORM’s total CAPEX commitments to $247m, covering the remaining CAPEX on the company’s four LR2 vessels and the four new MR vessels.
The company previously received the last of six MR newbuilds from SUNGDONG Shipbuilding & Marine Engineering in South Korea in March last year.
TORM's six new MR vessels feature an individual capacity of 49,842dwt and are compliant with the International Maritime Organisation’s (IMO) Tier II and III standards.
TORM is currently engaged in the shipping of refined oil products and possesses a total fleet of 80 vessels.