Odfjell Company signs contract worth nearly a billion with Chinese shipyard

OddfjellPhoto: Oddfjell

Odfjell has signed a letter of intent (LOI) worth nearly one billion for the construction of a further two chemical tankers for a Chinese shipyard.

The agreement includes two chemical tankers of 38,000 deadweight tonnes (dwt), with 40 tanks made of stainless steel, and a cargo capacity of approximately 45,000 cubic meters, reported Odfjell in a statement.

The agreement with the shipyard, Hudong-Zhonghua Shipbuilding, is in addition to previous contracts with the same shipyard for the delivery of four vessels of 49,000 dwt, with 33 tanks made of stainless steel.

‘The capital commitment of this LOI is approximately $116 million (equivalent to 960 million in Norwegian money). The agreement also includes further options’, the company said in the press release.

‘In combination with other agreements we have recently signed, this memorandum meets most of our needs for a renewal of Odfjell ‘super segregator’ chemical tankers’, said Kristian Mørch, the CEO of Odfjell.


Source: NTB scanpix / Norway Today