Shippingtelegraph.com: Asia’s SITC bolsters fleet with boxhip quartet order at Huanghai Shipbuilding

by Shipping Telegraph

Hong Kong-headquartered SITC International Holdings Company Limited, an Asian shipping logistics company, said that its wholly-owned subsidiary SITC Shipowning and Huanghai Shipbuilding Co., Ltd. entered on August 2 into four shipbuilding contracts.

Under the deal, the shipbuilder agreed to construct four vessels (2,700 teu container vessels) for the Group for a consideration of up to US$38.18m (equivalent to approximately HK$299.713m) per vessel and an aggregate consideration of up to US$152.72m (equivalent to approximately HK$1.198bn).

The delivery of the vessel under the first shipbuilding contract is expected to be made on or before 31 December 2027; under the second contract the delivery is expected to be made on or before 31 March 2028; under the third contract the delivery is expected on or before 31 May 2028; and the delivery of the fourth vessel is expected to be made on or before 31 July 2028.

As it is reported, payment of the consideration for each vessel under the shipbuilding contracts will be made in cash in five installments, in accordance with the progress of the construction of the relevant vessel.

SITC Shipowning is a limited liability company incorporated in the British Virgin Islands and is a wholly-owned subsidiary of the SITC International Holdings Company Limited, one of Asia’s shipping logistics companies that provides integrated transportation and logistics solutions.

SITC Shipowning is principally engaged in the business of vessel holding.

“The new construction will enable the Group to expand its self-owned fleet of container vessels to meet the increase in demand for the Group’s operational requirements,” SITC International Holdings Company Limited said in a filing.

The consideration for the new construction was determined based on “arm’s length negotiations”, SITC said, with reference to the market prices for the construction of new vessels of similar size in the open market as determined by the company’s directors.