Golden Ocean secure four newbuilds  at Korean and Chinese shipyards
Golden Ocean steps up for ships from new Chinese yard

Golden Ocean Group Limited  announced yesterday it has acquired two newbuilding contracts at Daehan Shipbuilding Co., Ltd., South Korea and two newbuilding contracts at the new Zhoushan Jinhaiwan Shipyard in China.

The vessels of 170,000 dwt and 176.000 dwt respectively will be delivered between December 2008 and October 2009.

The total purchase price for the four units is $296 million.

Given the continuous positive outlook for the global steel production and the age profile of the existing capesize fleet, the company said,  the management has a positive market view for this sector going forward. The Board of Golden Ocean said it finds the combination of price and time of delivery attractive, and an additional step in its ambitious growth strategy.

The Company has been granted the option for an additional two vessels from each yard, and these vessels can be delivered within first half of 2010.

The financing of the newbuildings will be accomplished through a combination of bank debt and liquidity generated from Golden Ocean. In addition sale and lease back structures will be considered.

Jinhaiwan, a private concern, located south of Shanghai, was established by Shanghai entrepreneur Huang Shang Nian through his property company last year. No doubt the new shipyard will hope for a flurry of orders following this announcement as happened before when Golden Ocean took the plunge and ordered 2 Panamax bulkers from the Jiangsu Rongsheng shipyard. As shipowners find it harder and harder to locate empty shipbuilding berths, any new facility is going to attract keen interest.