Japanese shipowner Doun Kisen has placed a order for Newcastlemax bulk carriers from a Chinese shipyard with which it has a long history of cooperation, in an effort to further expand its orderbook of bulk carriers.
According to industry sources, Doun Kisen has signed a contract with Nantong Xiangyu Shipbuilding & Offshore Engineering (Nantong Xiangyu SOE) to build three 210,000-ton Newcastlemax bulk carriers. Although the contract details have not yet been disclosed, according to market estimates, the cost of each ship is about US$76 million. Based on this calculation, the total price of the three new ships is US$228 million (approximately RMB 1.646 billion), and they are expected to be delivered in the first quarter of 2028.
This order is of great significance to Doun Kisen and Nantong Xiangyu SOE. It marks Doun Kisen’s official entry into the large bulk carrier market. It is also the first time that Nantong Xiangyu SOE has undertaken a Newcastlemax bulk carrier construction project, which will further expand Nantong Xiangyu SOE’s product portfolio.
It is understood that Doun Kisen and Nantong Xiangyu SOE have a 7-year history of cooperation, and since 2018, the two parties have cooperated to build 40,500 DWT, 63,500 DWT, 82,000 DWT bulk carriers as well as 40,000 DWT stainless steel chemical tankers. In November last year, Doun Kisen also placed an additional order for two 82,000 dwt and two 63,550 dwt bulk carriers with Nantong Xiangyu SOE, which are expected to be delivered in 2027, with the cost of a single vessel at US$37.3 million and US$35.3 million respectively.
Currently, Doun Kisen manages a fleet of over 100 vessels, mainly engaged in bulk carriers. In addition to the shipbuilding contract with Nantong Xiangyu SOE, Doun Kisen ordered four 82,000 dwt bulk carriers from Hengli Heavy Industries earlier this year, with a single vessel costing approximately US$37 million and expected to be delivered in 2027. This is the first time that Hengli Heavy Industries has taken orders from a Japanese shipowner.
The official website shows that Nantong Xiangyu SOE was established in December 2016 and formally put into production on May 11, 2017. The company currently focuses on environmentally friendly and energy-saving series bulk carriers, oil tankers and container ships below 100,000 tons, small and medium-sized stainless steel/specially coated chemical tankers and other engineering vessels.
In August last year, Nantong Xiangyu SOE won the core assets of Jiangsu Hongqiang marine Heavy Industry (Hongqiang Heavy Industry) for RMB 440 million through judicial auction. The assets won included 56,352.42 square meters of buildings owned by Hongqiang Heavy Industry, one dock, three 50,000-100,000 ton slipways, the right to use 682.3 meters of the Yangtze River coastline and related equipment, patents, etc. It is expected that after reaching full production, Nantong Xiangyu SOE’s annual production capacity will increase by 60%.
According to Clarkson, Nantong Xiangyu SOE has an order book of 77 vessels with deliveries scheduled through 2029.