CIMC Group signed contracts for the construction and lease of 7 container vessels

2013-07-04 09:00

CIMC Group announced late yesterday that its wholly-owned subsidiary, CIMC Leasing Hong Kong Limited, signed a container ship construction contract with Dalian Shipbuilding Industry Company Limited for the construction of seven 8,800 TEU container ships. The contract price for each ship is US\$85 million (approximately RMB 525 million), with a total contract value of approximately RMB 3.675 billion. This marks the company's second foray into shipbuilding.
  On the same day, CIMC Leasing Hong Kong signed a container ship financing lease contract with a subsidiary of MSC Mediterranean Shipping Company SA., with a term of 204 months. MSC, headquartered in Geneva, Switzerland, is the world's second-largest shipping company, with a global business network.
  According to the contract, CIMC Leasing Hong Kong will first purchase the seven ships from Dalian Shipbuilding and then lease them to a subsidiary of MSC. The delivery is expected to begin in the second quarter of 2015. CIMC Leasing Hong Kong's revenue in this project will mainly come from ship rental and the final residual value buyout. The daily rent for each ship is US\$25,000 (approximately RMB 154,000); upon expiration of the lease agreement, the MSC subsidiary will purchase all seven ships at US\$21.5 million (approximately RMB 133 million) per ship.
  As the world's largest container manufacturer, this is CIMC Group's second venture into the ship leasing industry. On September 22, 2012, CIMC Group announced that it would invest RMB 5.2 billion to build 10 ultra-large container ships. After delivery in 2014, these 10 ships will be leased to the third-largest liner company, CMA CGM, for operation.