China Merchants Energy Shipping (CMES) plans to build one 210,000 DWT Newcastlemax bulk carrier and four 1,800-TEU container ships through its wholly-owned subsidiary, China Merchants Shipbuilding Industry Group.
The total investment for the project is expected to not exceed CNY1.51 billion ($222.8 million).
Under the proposed agreement, the vessels will be constructed by shipyards under the affiliate shipbuilding group, with payments made in installments based on progress.
The company's board of directors approved the shipbuilding plans during a meeting on July 10. Its independent directors endorsed the transaction, stating that the project aligns with strategic plans to develop the dry bulk and container shipping businesses while optimising fleet capacity.
Prior to choosing the builder, the company said it conducted market research and compared quotes from independent third-party shipyards. The comparison showed that the affiliated shipyards offer earlier delivery slots and more favourable terms, according to CMES.
Funding for the project will be raised through a combination of internal resources and external financing. CMES noted the transaction must still be submitted to its shareholders for final approval.
