Group (SNTG), a subsidiary of Stolt-Nielsen S.A., announced that it has signed an agreement with ShinA
Shipbuilding Co. Ltd. of South Korea
for four 44,000 deadweight ton (dwt)
parcel tankers, with delivery scheduled to begin in the second quarter of
2008. The aggregate price for the four ships is expected to be just under $230
Each ship will be equipped with 29 fully coated tanks and will be built to
IMO 2 specifications, providing the additional segregations and cleaning
capacity required to transport vegetable oils and chemicals. The ships have
higher deadweight capacity than those built by SNTG in its last round of
newbuildings in the late 1990s, complementing SNTG's current high-end all
stainless steel fleet. The ships will replace tonnage currently scheduled for
withdrawal from SNTG's fleet.
SNTG's purchase decision followed a rigorous analysis of its tonnage-
replacement requirements, global economic factors, and the outlook for the
chemical tanker market. The selection of ShinA followed a thorough review of
potential quality shipyards worldwide.
Otto H. Fritzner, Chief Executive Officer of SNTG, said, "The purchase of
these ships is an important component of SNTG's overall fleet replacement
strategy. We are committed to ensuring that SNTG has the right size and
quality fleet to reliably and efficiently meet the supply-chain needs of our
valued customers worldwide, while also enabling us to capitalize on the strong
growth opportunities in our markets. Given the tight shipbuilding market, we
were pleased with ShinA's delivery schedule, the earliest currently available
in today's market for this type of ship."
"The addition of ships with this profile gives SNTG increased capacity in
two of our key markets-specialty chemicals and veg oils-and also provides
trading flexibility in other expanding markets, such as commodity chemicals,"