China Rongsheng Heavy Industries, the mainland's largest privately controlled shipbuilder, is a step closer to meeting its order target of US$2.5 billion this year after securing a deal to build up to 20 oil tankers for a mainland shipping company.
The contract was inked with Global Union Shipping, a previously unknown company that industry sources said was linked to a state-owned enterprise which has a long-term oil transport contract.
Under the pact with the shipbuilder, Global Union has ordered 10 157,000 deadweight tonne (dwt) Suezmax tankers with an option for 10 sister vessels.
No details of the purchase price were given, but British shipbroking house Clarkson said a typical 157,000-dwt Suezmax tanker cost US$61 million. This would put the value of the initial order at US$610 million, rising to US$1.2 billion if options for the other 10 vessels were exercised.
China Rongsheng said the latest order from Global Union took its total order book so far this year to more than 40 ships with a total contract value of more than US$2 billion. By comparison, the shipbuilder had won contracts worth about US$1.4 billion for 31 ships up to end of September.
The latest Suezmax tankers are to be delivered between the end of 2013 and in 2014.