Rongsheng books $1 billion bulker order

MAY 19, 2013 — China Rongsheng Heavy Industries Group Holdings Limited (01101.HK) says it has signed a shipbuilding contract for a series of 64,000 DWT bulk carriers with an undisclosed "European shipowner" worth a potential $1 billion, if all options are exercised.

The order is for 24 ships, firm, plus 12 options. The 24 confirmed orders include 18 existing orders for which the shipbuilder has secured better contractual terms after renegotiation.

The vessels are scheduled to be delivered within the next three years.

The 64,000 DWT bulk carrier is the smallest bulker ever built by Rongsheng which is, by some counts, the world's third largest shipbuilder and the largest in China.

Mr. Chen Qiang, chairman of the board of directors, executive director and chief executive officer, said, "In view of the current market condition, we will maximize sales efforts to and secure additional orders, and pursue better payment terms of certain existing orders."

Rongsheng last month reported a loss of 8.7 billion yuan (about $1.4 billion) for last year.