Coastal Group News

In March, Cargotec secured new orders for two 100-ton active heave-compensated offshore cranes from the wholly-owned subsidiaries of a Malaysian shipbuilding and vessel chartering group, Coastal Contracts Bhd (together with its subsidiaries "Coastal Group"). The cranes are destined for two 85m newly-built offshore support vessels, currently under construction within the group. "There was strong competition for these new orders," said Frode Grovan, Cargotec Director, Sales and Marketing, Advanced Load Handling. The delivery of the offshore cranes is scheduled within 14 months, and they will be manufactured in China.

According to reports, deepwater oil and gas exploration and production activities by oil majors are likely to pick up steam and go forward with the surging demand and tight supply situation that has pushed crude prices to new highs in recent months. Since the beginning of this year, the Coastal group has booked the sale of one unit of the offshore support vessel. Five other firm orders have also been placed with the Coastal group from customers from the Middle East and Western Europe. Three of these vessels are expected to be delivered this year, it said in its 2005 Annual Report. The favourable conditions of the region's energy and oil transportation markets have led to positive flow-through opportunities for the Coastal group…