Jiangsu Rongsheng signs $483m Oman Shipping VLOC deal

Jiangsu Rongsheng Heavy Industry, China’s largest privately-owned shipbuilder, inked a $483m contract with Oman Shipping in Shanghai today for building four 400,000 dwt very large ore carriers.
The deal is the second largest newbuilding order for China’s shipbuilding industry this year after a 30-bulker order was placed at Zhoushan Jinhaiwan Shipyard by Grand China Logistics. It was witnessed by Jiangsu Rongsheng Heavy Industry president Chen Qiang and Oman Shipping director Ahmed Macki.
Last year Brazilian mining company Vale contracted Jiangsu Rongsheng to build 12 400,000 dwt very large ore carriers.
Commenting today about the shipbuilder’s planned $2bn initial public offering, Jiangsu Rongsheng managing director Zhang Ming said the listing this year is “possible, though 2010 is more likely” as the shipbuilding industry recovers. It originally planned to list last November, but this was postponed as a result of poor market sentiment.
As previously reported in Lloyd’s List, Jiangsu Rongsheng management subsequently said the IPO could take place either this year or when market sentiment improved.
Speaking about order cancellations at Chinese shipyards, Mr Zhang said Chinese commercial lenders including China Development Bank are helping shipbuilders by offering financing to overseas shipowners unable to raise funds at home.
Previously, only the Export-Import Bank of China provided funds for overseas orders, he added

Source: Port News