On July 24, Shanghai Kai Chuang Marine International Co., Ltd. (hereinafter referred to as “SKMIC”) issued an “Announcement on the Signing of Two Ship Design and Construction Contracts by its Wholly-owned Subsidiary.”
The announcement disclosed that SKMIC’s wholly-owned subsidiary, Shanghai Kaichuang Deep Sea Fisheries Co., Ltd. (hereinafter referred to as “Kaichuang Deep Sea Fisheries”), signed two “Ship Design and Construction Contracts” with Fujian Mawei Shipbuilding Co., Ltd. (hereinafter referred to as “Mawei Shipbuilding”) to build two tuna seine vessels, each priced at 183.75 million yuan, for a total price of 367.5 million yuan (approximately US$51 million). The two seine vessels to be constructed will replace two outdated vessels that were scrapped in 2020.
According to the announcement, of the two contracts, the construction contract for one vessel will take effect immediately after meeting the conditions for effectiveness; the other contract will not take effect for the time being, and Kaichuang Deep Sea Fisheries can decide whether to activate it within 80 working days after signing the contract. If the vessel is taken effect, both parties will perform the contract; if it is not selected to take effect, the contract will be invalid from the beginning, and Mawei Shipbuilding has no right to claim rights in this regard.
The two vessels are scheduled to be delivered on March 14, 2027 and April 14, 2027 respectively.
According to public information, Mawei Shipbuilding has the ability to research and develop, design, manufacture and repair all types of ships below 100,000 tons. In 2016, Mawei Shipbuilding obtained the qualification to undertake military products and can build military auxiliary ships. The 700TEU and 800TEU container ships built by it have been rated as famous products in Fujian Province, among which the 700TEU container ship is even known as the “world benchmark product”. The series of container ships and offshore ship products are upgraded by one level every three years on average.
As the sole sub-company of SKMIC, Shanghai Kaichuang Deep Sea Fisheries Co., Ltd. mainly focuses on deep sea fishing, aquatic product processing and related trading. The company, which owns a fleet of 12 tuna purse seiners and a fleet of 2 large factory trawlers, is both the head company and deputy company in the working groups of large tuna purse seiners and large factory processing trawlers of China Overseas Fisheries Association (COFA). The company acquired or gained control of, either domestically or overseas, Hijos de Carlos Albo S.L.U., Pan Pacific Foods (RMI) Inc., Pan Pacific Fish (RMI) Inc., Kanglong (H.K.) Shipping Limited, Asian Pacific Tuna Pvt. Ltd., Cape St. Vincent (FSM) Inc., French Creek Seafood Ltd. and Zhoushan Huantai Seafood Co., Ltd. etc.