April 4, 2005

Stolt Nielsen orders two from Kleven

Stolt-Nielsen Transportation Group (SNTG), a subsidiary of Stolt-Nielsen S.A., says it has reached agreement with the Kleven Floro yard in Norway for two 43,000 dwt parcel tankers for delivery in late 2007 and early 2008.

The ships, which will each have 39 tanks, partly stainless steel, partly coated, will complement the all stainless steel tank ships SNTG built in the late 1990's and provide flexibility to pursue growth opportunities in the chemical markets, says the company.

The aggregate price for the two ships is expected to be just under $160 million.

Commenting on the order, Otto H. Fritzner, CEO of SNTG, said, "We are continuously following the shipbuilding market worldwide and we placed this order following an evaluation of shipyards capable of building parcel tankers and giving very favorable delivery time and also following a thorough economic analysis of newbuilding costs and freight rates. Given the very strong parcel tanker market, rising newbuilding prices, high stainless steel costs, and SNTG's need for replacement tonnage, we are pleased to have secured an earlier than anticipated delivery for these two ships from Kleven Floro, an experienced shipyard where we have built ships before and know their standard of excellent quality."

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