On May 10, Inner Mongolia Junzheng Energy & Chemical Group Co., Ltd. (Junzheng) released the Announcement on the Investment in the Construction of Chemical Tankers by the Company’s Wholly-owned Subsidiary.
The announcement disclosed that on May 10, 2024, SC International FZE and JZ Logistics Holding (Overseas), wholly-owned subsidiaries of Junzheng Group, entered into a total of 5 contracts for the construction of 25,900 DWT chemical tankers with Wuchang Shipbuilding Industry Group Co.,Ltd (“WS”), an affiliate of China Shipbuilding Industry Corporation respectively.
Of which, SC International FZE and WS entered into a ship construction option agreement, reserving the option to place orders for no more than five chemical tankers of the same type, with the order option to be exercised at the discretion of Junzheng Group in accordance with the actual situation.
The total price of all the above chemical tankers, including tax, will not exceed RMB 3.2 billion. The new shipbuildings will be completed and delivered one after another in 2-4 years (expected from 2026 to 2028), and will be classified by American Bureau of Shipping (ABS) flying the Hong Kong flag.
According to Junzheng Group, the investment in the construction of chemical tankers can further optimize the company’s fleet structure and expand the fleet size, which is conducive to the expansion of the company’s market share and the enhancement of the company’s operational capability and market competitiveness.
Also, it will help the company to be able to better respond to customers’ needs and provide better quality transportation services. This investment can consolidate Junzheng Group’s position and sustainable development ability in liquid chemical shipping service, improve the company’s competitiveness in the international market, and is in line with its strategic development plan.
In related news, on May 9, WS signed an additional contract for the construction of two 25,900DWT stainless steel chemical tankers with Xingtong Walrus Shipping Co. and Xingtong Seahorse Shipping Co. under Xingtong Shipping. According to an announcement released by Xingtong Shipping on the evening of May 9, the cost of a single vessel will not exceed RMB 318 million and will be delivered on March 31, 2026 and June 30, 2026 respectively.
