In order to further optimize the fleet structure and expand the fleet size, Inner Mongolia Junzheng Energy & Chemical Group (Junzheng Group) has announced the exercise of options for a total of 10 chemical tankers in two shipyards.
In industry news, Junzheng Group has earlier announced the exercise of options for five 25,900 dwt chemical tankers each from China Merchants Jinling Shipyard in Yangzhou (CMJL Yangzhou) and CSSC Wuchang Shipbuilding Industry Group (Wuchang Shipbuilding).
With the option orders taking effect, Junzheng Group has ordered a total of 20 chemical tankers from Wuchang Shipbuilding and CMJL Yangzhou so far this year.
The two option orders are the 5+5 DWT 25,900 chemical tankers construction contract with CMJL Yangzhou, announced by Junzheng Group in April through its wholly-owned offshore subsidiary SC International FZE, and the 5+5 DWT 25,900 chemical tankers construction contract with Wuchang Shipbuilding, announced by Junzheng Group in May.
According to the announcement, including the option orders, the total value of the shipbuilding contracts signed by Junzheng Group with CMJL Yangzhou and Wuchang Shipbuilding respectively is not more than RMB 3.2 billion (about $453 million including tax). The total value of the 20 new shipbuildings is RMB 6.4 billion ($907 million).
The new chemical tankers are expected to be completed and delivered in 2-4 years and will be classed by American Bureau of Shipping (ABS) under Hong Kong flag.
Junzheng Group said earlier in the announcement that the investment in the construction of chemical tankers can further optimize the company’s fleet structure and expand the fleet size, which is beneficial to expanding its market share and enhancing the operational capability and market competitiveness. Also, it helps Junzheng Group to be able to better respond to customer needs and provide better transportation services.
Junzheng Group currently owns a fleet of 82 chemical tankers and liquefied gas tankers of 3,000-40,000 tons, with a total capacity of about 1,140,000 DWT and an annual cargo volume of more than 10 million tons. The business covers from China’s domestic trade coastal to India, Middle East, Europe, North and South America global routes. It is the largest liquid chemical shipowner in China and the only Chinese liquid chemical shipowner engaging in global routes.
