China Ship to Build $308m Worth Tankers

China Shipping Development Co. Ltd. said on it planned to build six oil tankers worth $307.56m for delivery in 2009 and 2010 to help expand its ocean shipping business. China Ship has signed an agreement with China's Dalian Shipbuilding Industry Co. Ltd. to build six tankers with a capacity of 76,000 tons, China Ship said in a filing to the Shanghai Stock Exchange.

The deal needs the approval of shareholders, it said. China Ship would pay in five installments, with 20 percent of the cost coming from its own capital and 80 percent from bank loans, it said.

It said the company had 69 oil tankers, with a combined capacity of 3.4m tons by the end of 2006. China Ship's Shanghai A shares rose 2.41 percent to close at 12.30 yuan on Friday. Source: Reuters