China Shipyard Denies Stories on Vale's VLOC Orders

Monday, April 23, 2012

China Rongsheng Heavy Industries denies a report distributed by Jinji Cankao Bao on its VLOC newbuildings for Vale S.A.

China Rongsheng Heavy Industries Group Holdings Limited offically denies the false report of “Vale declined to receive three VLOCs built by Rongsheng Heavy Industries” distributed by Jinji Cankao Bao. In order to benefit shareholders, ship-owners and ourselves, the Group always takes swift and necessary actions on clarifying unfounded rumors in the market.

According to the Jinji Cankao Bao’s report, “Rongsheng Heavy Industries, the second largest shipbuilder in China, has already completed three VLOCs ordered by Vale. However, these vessels have been delayed delivery from Vale because of various reasons, and they are still docking in the Rongsheng’s wharf”.

Also the reports mentioned Vale only received one VLOC, which is referring to as VALE CHINA from Rongsheng, and the three another VLOCs have not been delivered to Vale successfully. Jinji Cankao Bao reported, “the second and the third VLOC have been launched last year and still not to be delivered to Vale, even though the VALE DONGJIAKOU, the second VLOC,started sea trail from 27 February. Also, the completed VALE DALIAN and VALE HEBEI are still docking at Rongsheng’s wharf.”

To clarify, China Rongsheng Heavy Industries have announced the latest development on the VLOCs referring to the “China Rongsheng Heavy Industries’ Responses To The Market Concerns” statement released on 11 April 2012. The statement told, ‘Our second VLOC was delivered to Vale and the third is on sea trial now. The fourth and the fifth were already left our dry docks and will soon be carried out for sea trials. The delivery of VLOC is intimate and smooth.”

The inaccurate report caused damage to the reputation of the Group and serious negative impact in the society. We retain the right to further probe into the matter and bring those involved into accountability.

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