JAPAN / CHINA – Mitsui O.S.K. Lines (MOL) today announced that MOL has become the first overseas ship-owner to sign a long-term iron ore transport contract with Jiangsu Shagang Group Co. of China. MOL will transport iron ore from Australia and Brazil to Jiangsu Shagang’s Ningbo facilities.
Jiangsu Shagang is a leading Chinese steelmaker and is one of the largest private steel manufacturers in the world. In 2008, its annual ore production was 23.3 million tonnes, and its annual iron ore imports (from Brazil, Australia, etc.) were 16.34 million tonnes.
The company is currently expanding its business and the new supplies to be delivered by MOL are crucial to Jiangsu Shagang maintaining this program.
To fulfil the 10-year contract MOL is building a dedicated 207,000-tonne iron ore carrier, to be constructed at the Universal Shipbuilding Corporation, which is scheduled for completion in late 2011.
MOL is already heavily involved in supplying material demand for the Japanese steel industry and the new Chinese contract reaffirms their acknowledged expertise in the field.
Picture Caption: Signing Ceremony (From left) 1. Mr.Shen Wenming, Vice President, Jiangsu Shagang Group 2. Kenichi Nagata, Managing Executive Officer, Mitsui O.S.K. Lines, Ltd.
