IMS orders LPG carriers from China

IM Skaugen ASA (IMS) has entered into an agreement to build two 3,200 cubic metre LPG carriers with a Chinese shipyard south east of Shanghai at a cost of $15 million. The newbuildings will be delivered in the second half of 2006 and will be built to specifications and rules enabling them to fly either the Hong Kong or the PRC flag. IMS has entered into a new type of arrangements in shipbuilding in which it is assuming a lot more of the responsibility for not only vessel design, but also for sourcing of steel and components for the vessel construction.

To manage these additional risks, IMS is developing further its competence of doing business in China by creating an alliance with the shipyard to assist it in developing its business to service the export markets in the future. In return, IMS gets access to vessels that will enable the company to improve its efficiency and competitiveness. IMS has ambitious plans to develop its Chinese marine transportation services and to engage further in both the domestic transportation and the imports and exports of LPG as well as petrochemical gases and products in China.