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Thursday 18 August, 2011

Dongfang

First Day of Dealings on AIM

RNS Number : 5548M
Dongfang Shipbuilding Company Ltd
18 August 2011
 



 

 

 

Press Release

18 August 2011

 

 

Dongfang Shipbuilding (Group) Company Limited

("Dongfang" or the "Group")

 

First Day of Dealings on AIM

 

Dongfang, the international shipping company and shipbuilder, is pleased to announce its admission to the AIM market of the London Stock Exchange and the commencement of dealings in its 190,000,000 ordinary shares ("Ordinary Shares").  The Ordinary Shares will trade under the ticker DFS with ISINSG9999007926.

 

Northland Capital Partners Limited is acting as Nominated Adviser and Broker to the Company.

 

Chen Tongkao, Chief Executive Officer, said:  "The Board is delighted that Dongfang is today joining AIM; this is a significant step forward for the Group.  The listing will enhance Dongfang's standing particularly with our European customers and give us access to equity capital in the future as opportunities arise in our markets. "

 

"We look forward to working with our shareholders to build on the Group's prospects in both the shipbuilding and shipping markets." 

 

The admission document, along with the information required by AIM Rule 26, is available from the Company's website, www.dongfangship.com.cn.

 

About the Group

The Group's principal business is in shipbuilding; manufacturing small and medium size vessels such as chemical tankers and multi-purpose containerships at its two shipbuilding yards in Anhui and Zhejiang provinces, PRC.  In recent years, the Group has diversified into shipping; owning and operating a fleet of chemical tankers out of Singapore and Hong Kong.  The Group currently has approximately 538 full time employees across the two businesses. 

 

Shipbuilding

The Group manufactures a variety of small and medium size vessels ranging from 3,000 DWT to 17,000 DWT for commercial customers in the international shipping markets.  The Group's principal vessels to date have been chemical tankers, bulkers and multi-purpose containerships. In 2008 - 2010, the Group completed twelve chemical tankers (ranging from 5,000 DWT to 9,200 DWT) and five multi-purpose containerships (ranging from 5,000 DWT to 17,000 DWT). The Group has recently moved into the production of 3,200 DWT stainless steel chemical vessels.  The shipbuilding order book as at 30 June 2011 amounted to approximately US$89 million, with contracted delivery dates ranging from August 2011 to January 2014.

 

Shipping

The Group's shipping fleet comprises seven chemical tankers.  A further two vessels are under construction and due to join the fleet in 2011. Of the nine vessels, eight are 9,000 DWT chemical tankers and one is a 9,200 DWT chemical tanker. The vessels are suitable to transport industrial chemical cargoes and, to date, most customers have been shipping from Taiwan and South Korea to the PRC.

 

Strategy

 

The Group's shipbuilding strategy is to increase output so as to fully utilise the increased capacity at the Anhui shipyard. The Directors intend to place greater emphasis on improving production processes to minimise the risk of default under contracts and to focus only on those customers which can demonstrate sufficient resources to complete on orders.

 

In the shipping business, Dongfang has developed relationships with over 20 shipping brokers to bolster sales and ensure maximum utilisation of the vessels. A number of potential customers have recently made enquiries with a view to potential orders. The Directors consider the growth of the shipping business as key to diversifying the revenues of the Group and, in doing so, mitigating some of the long contract lead times involved with shipbuilding.

 

The Directors will also be looking at ways to refinance the Group's current debt position.

 

- Ends -

For further information:

Dongfang Shipbuilding


Chen Tongkao, Chief Executive Officer


ctk@dongfangship.com.cn

www.dongfangship.com.cn

AKM Ismail, Finance Director

Tel: +44 (0) 7786 712 459

 

Northland Capital Partners Limited


Luke Cairns / Edward Hutton

Tel: +44 (0) 20 7796 8800



 

Media enquiries:

Abchurch Communications Limited


Joanne Shears / Quincy Allan

Tel: +44 (0) 20 7398 7709

joanne.shears@abchurch-group.com

www.abchurch-group.com

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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