China CSSC Rises After Securing USD1.2 Billion Order for 12 Container Ships

(Yicai) April 23 -- Shares in the listed arm of China State Shipbuilding Corporation jumped after the country's largest shipbuilding conglomerate said it had received an order for a dozen 9,200 twenty-foot equivalent unit container ships worth about CNY9 billion (USD1.2 billion).The 12 vessels will be built by CSSC's subsidiary Dalian Shipbuilding Industry for a well-known shipowner, its listed unit China CSSC Holdings announced late yesterday. Deliveries are scheduled between 2028 and 2030, with payments made in Chinese yuan, it noted, without disclosing the name of the client due to a waiver agreement.Shares of CSSC Holdings [SHA: 600150] ended 5.8 percent higher at CNY38.60 (USD5.65) each in Shanghai today, while the benchmark index fell 0.3 percent. The stock has surged more than 26 percent since the end of last month, when Shanghai-based CSSC announced the first of its two major deals in less than a month.In late March, the company signed an agreement to build 10 very large crude carriers for China Merchants Energy Shipping worth in the region of CNY8 billion to CNY9 billion in total.The latest order is for a new generation of medium-sized container ships designed by Dalian Shipbuilding in line with the latest global environmental design standards, CSSC Holdings said. Their overall performance, environmental compatibility, operational reliability, and other key metrics will all reach a globally leading level among vessels of the same type, it pointed out.The project will allow Dalian Shipbuilding to fully exploit its strength in construction efficiency, speed up its product-mix upgrade, and further strengthen its track record and brand presence in the container shipbuilding market, CSSC Holdings added.Editor: Martin Kadiev