The Straits Times / The Business Times News on Cosco

Cosco unit wins US$35m deal

COSCO Corporation (Singapore)'s 51 per cent-owned subsidiary, Cosco Shipyard Group, has secured a US$35 million contract from Modec International LLC.

Mr Ji: Construction of the second VLCC size dry dock is progressing as planned.

The contract is to carry out the hull and marine repair and conversion work of an oil carrier to a floating, production, storage and offloading (FPSO) unit capable of handling 1.6 million barrels. Work at the group's Dalian shipyard will start this month.

Ji Hai Sheng, vice-chairman of Cosco Shipyard, said the contract is a 'further testimony that Cosco has successfully penetrated the highly specialised and sophisticated FPSO offshore conversion and modification market'.

He added that the company is continuously upgrading its shipyard to meet higher demand and customers' expectations.

A new Panamax size dry dock facility at Cosco Zhoushan Shipyard has been commissioned, boosting the yard's capacity up by 6 per cent from 1.35 million dwt to 1.43 million dwt.

Mr Ji said construction of the second very large crude carrier (VLCC) size dry dock is progressing as planned and scheduled to be completed by the end of May.

The latest contract is not expected to have a significant impact on the net tangible assets and earnings per share of the company for the year ending Dec 31, 2007.