China State Shipbuilding Corporation (CSSC) has announced that its subsidiaries will construct 87 vessels for China COSCO Shipping Corporation under a new cooperation agreement valued at approximately CNY50 billion ($6.9 billion).
The agreement, signed in Shanghai on December 8, covers a diverse range of vessel types, including ultra-large container ships, ultra-large bulk carriers, very large crude carriers (VLCC), grain carriers, multi-purpose heavy lift vessels, medium range (MR) tankers, Ro-Pax vessels, and small container ships.
The construction work will be undertaken by CSSC subsidiaries, including Jiangnan Shipyard, Dalian Shipbuilding Industry (DSIC), Wuchang Shipbuilding, Guangzhou Shipyard International (GSI), Chengxi Shipyard, and Qingdao Beihai Shipbuilding.
The company noted that the transaction involves approximately CNY47 billion in cross-border Renminbi settlement. CSSC cautioned that the agreement includes some letters of intent and spans a long performance period, making the actual execution subject to shipping market fluctuations.
It added that while the deal is not expected to materially impact current profits, it is projected to boost future revenue and market competitiveness.
