New Chinese shipyard launches its second vessel
TITAN SPIRIT launched today

 

Titan Quanzhou Shipyard Co., Ltd. a growing ship repair, shipbuilding and offshore engineering
facility in China’s Fujian province, today announced the launch of its second vessel, TITAN SPIRIT.

The launch of this 6,500 ton double-hulled bunker tanker closely follows the launch of Titan Quanzhou Shipyard’s maiden vessel, TITAN HONOUR in August this year and underlines the strong momentum in the business.

It is the second of the 22 vessels already currently on order at the shipyard, which represents a total order book of US$210 million.

The remaining vessels will be delivered during the course of 2008 and 2009.

Titan Quanzhou Shipyard was designed by the China State Shipbuilding Corporation in conjunction with industry experts from Japan, Singapore and China. The state-of-the-art facility combines shipbuilding, ship repair and offshore engineering in an efficient and seamless manufacturing system. It has attracted senior management and engineering talent from major shipyards in Singapore and Dalian, and the former president of Sembawang Engineering and Construction Group is senior consultant to the shipyard.

Titan Quanzhou Shipyard is thus able to draw on the expertise of Singapore, one of the world's main ship repair centres and a global leader in the construction of specialized vessels, as well as of Dalian, the largest comprehensive shipbuilding base in China.

This combination of modern design and highly experienced management, say Titan, has enabled the shipyard to be built on schedule and according to budget.

When fully operational by the end of 2009, the shipyard will have a shipbuilding capacity of 26 specialized vessels a year. The ship repair unit will have a capacity of 250 vessels a year and be able to handle VLCCs and the largest 397 meter container ships.

Earlier this month, integrated oil logistics provider, Titan Petrochemicals Group Limited (Titan) announced it had agreed, subject to the fulfillment of certain conditions, to acquire 100% of Titan Quanzhou Shipyard for a total consideration of US$170 million in cash and shares, with an earn-out mechanism to reduce investment risk. Titan said its investment will benefit from a favourable market environment, and contribute a stable and growing cash flow, helping transform Titan’s earnings base to a well-balanced and diversified portfolio.