China Merchants Energy Shipping announced plans to construct six new 343,000 DWT very large ore carriers for a total investment expected to not exceed CNY4.93 billion ($727.9 million).
The vessels are scheduled for delivery between 2029 and 2030, with construction assigned to yards under company affiliate China Merchants Shipbuilding Industry Group.
The board of directors disclosed that the firm's controlling shareholder, China Merchants Steam Navigation Company, submitted an interim proposal on July 17 to table the agreement at the upcoming extraordinary general meeting on July 28.
To fund the project, CMES plans to combine its own capital with external financing, making installment payments in US dollars or yuan as building milestones are met.
The shipping firm conducted extensive market research and compared terms with several independent third-party shipyards before selecting its affiliate.
The company's independent directors stated, "The vessel order is in line with the company's strategic planning and the development needs of the bulk carrier shipping business."
