Paragon Shipping has contracted a Chinese shipyard to build two handysize drybulk vessels and two kamsarmax carriers for a total purchase price of nearly $111.5m.

The shipping company expects the delivery of 37,200dwt handysize carriers in the fourth quarter of 2011 while the 82,000dwt Kamsarmax ships are scheduled for the second and third quarters of 2012.

The four vessels will expand the Greek company’s fleet by 33% to 16 vessels with an aggregate carrying capacity of nearly 1,000,000dwt, it said.

Paragon said it has the option to build an additional two handysize and two Kamsarmax vessels with expected deliveries in the third and fourth quarters of 2012, respectively.

The company expects the delivery of the Dream Seas, a 2009-built panamax drybulk carrier by July.