Aspo's ESL Shipping has signed a long-term agreement for raw material sea transport with SSAB and orders the world's first l...
November 26 2015 - 1:00AM
ASPO Plc STOCK EXCHANGE
RELEASE November 26, 2015, at 08:00
a.m.
Aspo's ESL Shipping has signed a long-term agreement for raw
material sea transport with SSAB and orders the world's first
large LNG-fueled bulk carriers
Aspo Group's ESL Shipping Ltd and the steel
company SSAB have signed a long-term frame agreement covering
SSAB's inbound raw material sea transports within the Baltic Sea
and from the North Sea. The purpose of the agreement is to enable
mutual, long-term gains in efficiency and to reduce overall
logistics costs, while simultaneously making raw material logistics
as sustainable and environmentally friendly as possible. At
present, the aggregated sea transport volume covered by the
agreement is estimated to be 6-7 million tons annually.
Resulting from the agreement, ESL Shipping
will order new, extremely energy-efficient LNG-fueled ships. These
new, ice-class 1A ships will be the first LNG-fueled large bulk
carriers in the world, representing the latest in technology and
innovation. CO2 emissions per
ton of cargo transported will be reduced by more than 50% in
comparison to present vessels.
"This new agreement is a solid example of
SSAB's sustainability strategy in action," says Per Bondemark,
Chief Procurement Officer at SSAB.
"ESL Shipping's new customer agreement
running for several years will secure growing freight volumes, and
the new investments to be implemented will release old vessel stock
for other transport needs. Besides their environmental benefits,
the cost savings provided by the new technology will also allow
better profitability," says Aki Ojanen, Chairman of the Board of
ESL Shipping and CEO of Aspo Group.
"We are extremely pleased to continue our
long-established sea transport partnership with SSAB. Together we
shall make shipping more sustainable and environmentally aware than
ever before", says Mikki Koskinen, Managing Director of ESL
Shipping.
The two new vessels will be built at Sinotrans & CSC Qingshan
Shipyard in China and will start operating in the Baltic Sea in
early 2018. The total value of the investment is approximately EUR
60 million. The investment cash flow will be divided progressively
between 2015 and 2018. The construction work is made together with
the Finnish designer Deltamarin. ESL Shipping has been working in
close cooperation on the ship design and tailor-made the ships
according to customer needs. Special attention was given to the
efficiency of cargo handling and cargo hold arrangements. The new
ship also exhibits efficient operation and extensive model tests
have been performed for both water (SSPA) and ice class (Aker
Arctic) operations.
Technical data: capacity 25.600 dwt, lenght160 m, breadth 26 m,
shallow draft10 m.
ESL Shipping Ltd is the leading carrier of dry bulk cargoes in the
Baltic Sea region. The company's main clients are the steel, power
generation and chemical industries. Present fleet consists of 14
vessel units, and in 2014 the cargo volume carried was 12.1 million
tons. ESL Shipping ensures availability of raw materials for
industries and energy production throughout the year even in
difficult climate conditions. Special services include loading,
topping off and lightering of large ocean carriers at
sea.
ASPO Plc
Aki Ojanen
CEO
Further information:
Aki Ojanen, CEO of Aspo Plc, Chairman of the Board of ESL Shipping
Ltd, tel. +358 9 521 4010, aki.ojanen@aspo.com
Mikki Koskinen, Managing Director of
ESL Shipping Ltd, phone +358 9 5211 or +358 50
3517791,
mikki.koskinen@eslshipping.com, www.eslshipping.com
Distribution:
Nasdaq Helsinki
Key Media
www.aspo.com
Aspo is a conglomerate that owns and develops business operations
in Northern Europe and growth markets focusing on demanding B-to-B
customers. Our strong company brands - ESL Shipping, Leipurin,
Telko and Kaukomarkkinat - aim to be the market leaders in their
sectors. They are responsible for their own operations, customer
relationships and the development of these. Together they generate
Aspo's goodwill. Aspo's Group structure and business operations are
continually developed without any predefined schedules.
Photo: ESL Shipping's new LNG bulk
carrier (10.7 MB)
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announcement is distributed by NASDAQ OMX Corporate Solutions on
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The issuer of this announcement warrants that they are solely
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information contained therein.
Source: Aspo Oyj via Globenewswire
HUG#1969494