|MISC Expands Chemical Business With 8 New Double-Hulled IMO II Tankers
05 Jun 2007 | MISC Berhad
MISC is set to expand the global footprint of its Chemical business following the signing of an agreement between MISC Berhad (MISC) and SLS Shipbuilding of Korea (SLS) for the purchase of eight 45,000 dead weight tonnes (DWT) chemical tankers.
Present at the signing ceremony was MISC President/Chief Executive Officer, YBhg. Dato' Shamsul Azhar Abbas while SLS Shipbuilding was represented by its Chairman, Mr. Kuk-Chul Lee and its President & Chief Executive Officer, Mr. Hak-Kyu Kim.
The double-hulled IMO II vessels, which will cost approximately USD 430 million, are fully compliant with MARPOL (International Convention for the Prevention of Pollution from Ships) regulations. Although shipyards in Korea and Japan are well covered into 2010 and beyond, MISC is able to obtain early berth positions from SLS with these vessels being delivered from 2009 and 2010.
The coming into service of these new vessels will enable MISC to grow beyond its existing capabilities by capitalizing on the opportunities provided by the rapidly growing global vegetable oil and chemical trades and potentially clean Petroleum
Products (CPP) market as well. At the same time, it will allow MISC to further expand into the growing palm oil market, by leveraging on the close relationships that have been developed with palm oil producers and exporters over the years and developing new customers and strategic partnerships. Over the years, MISC has transported around 10% of Malaysian export of palm oil.
The purchase of these eight new tankers from SLS is in addition to the current eight newbuildings of 38,000 DWT ordered from STX Shipbuilding in 2006, which were intended to replace the single hulled chemical tankers in MISC's fleet. These additional newbuildings will provide MISC with the critical mass it requires to better serve its customers globally and allowing MISC greater flexibility to expand its chemical tanker market presence in the international arena. These vessels are wellsuited to carry a wide array of vegetable oil, chemical and CPP cargoes, thus increasing MISC's service offerings and competitiveness in the chemical shipping business. With the expanded chemical fleet which are all double-hulled and fully IMO compliant taking into account the new regulations, MISC is well placed to service the growing Malaysian palm oil transportation needs.
Whilst the new vessels will help to increase MISC's global presence in the deep-sea chemical and vegetable oil trades, MISC is also strengthening its participation in the regional chemical tanker business by increasing its medium-sized chemical tankers to support intra-regional movement. In addition to its three 19,700 DWT fully stainless steel vessels in its existing fleet, MISC recently signed a long-term charter-party agreement for a further two 19,900 DWT stainless steel chemical tankers to be built in
Japan. These vessels are constructed to high specifications and are designed to carry a wide variety of chemical commodities of various parcel sizes and vegetable oil products, including palm oil.
Moving forward, MISC considers the Chemical business as an integral part of its strategic focus and business portfolio. The company plans to continue to grow its Chemical business, focusing on targeted niche chemical and vegetable oil shipping markets, and optimizing its business and asset mix.
For more information kindly contact:
Mdm. Fiona Clare Pereira,
Corporate Affairs Department,
Tel: 03-2275 2701
Fax: 03-2275 2888