SINGAPORE, April 18,
2024 /PRNewswire/ -- Caravelle International Group
(Nasdaq:CACO), a leading global marine technology group of
companies, today announced the signing of an innovative manganese
ore sourcing agreement with CUEX Metal AG ("CUEX"), a leading
provider of services to the global steel, foundry and smelting
industries.
This partnership not only ensures CUEX's stability in the global
manganese ore supply chain, but also marks a substantial step
forward in the cooperation between the two companies in the wood
drying business. CUEX has built an outstanding reputation in the
metals market for its insistence on quality and pursuit of
innovation, and with a wide range of services that include not only
the supply of key raw materials for steel manufacturing, but also
cover a wide range of segments such as casting and smelting, CUEX
is committed to providing comprehensive metals solutions to its
customers around the world.
Under the agreement, Caravelle will supply a total of 4.5
million tons of high-quality manganese ore to CUEX through its
subsidiary, Singapore Garden Technology Pte Ltd ("SGT"), with
supply schedules of 1.0 million tons in 2024, 1.5 million tons in
2025 and 2.0 million tons in 2026. The manganese ore must be of
stringent quality, with manganese content (Mn content) at or above
38% to meet CUEX's high standards for raw materials. Prices will be
negotiated based on international market prices and a written
single purchase and sale agreement will be formed to ensure
transparency and fairness of the transaction.
CUEX will pay the full amount through an irrevocable letter of
credit, demonstrating its financial strength and trust in its
partners. The delivery terms follow the CnF (Cost plus Freight)
clause of Incoterms 2024, which guarantees the smooth delivery of
the goods to the port designated by CUEX, SGT will be responsible
for the transportation of the goods to the designated port and bear
all the costs and risks in the process of transportation, and CUEX
will need to take out full marine insurance for the goods to ensure
the safety of the transportation process. CUEX is required to
insure the goods with sufficient marine insurance to protect the
safety of the goods during transportation.
The highlight of this cooperation is an innovative business
model that the two companies have explored together: the
transportation of manganese ore and the drying of wood on the same
carrier. This model not only improves transportation efficiency and
output and reduces logistics costs, but also opens up new market
opportunities for Caravelle's wood drying business. Through this
innovative synergistic approach, the two companies are optimizing
the allocation of resources, promoting environmental sustainability
and generating additional economic benefits, Caravelle expects to
earn close to $400-500 million
annually through the partnership with CUEX, which includes the
combined revenues from the trade and transportation of manganese
ore and the trade, transportation and drying of timber. Caravelle's
total revenues are expected to be in the range of $1.2 billion to $1.5
billion over the three-year term of the partnership.
CUEX officially expressed the cooperation with Caravelle not
only provides a stable supply of manganese ore, but also opens up
new possibilities to explore our business in the field of wood
drying. They look forward to creating more value for our customers
through this innovative partnership model." Caravelle's Chairman of
the Board of Directors and CEO, Dr. Guohua
Zhang, also expressed a positive attitude towards the
partnership, "We are pleased to establish a long-term relationship
with CUEX and contribute to the development of the global steel
industry through our professional services."
The partnership between CUEX Metal AG and Caravelle
International Group is an important step in the strategic
deployment of the two companies in the global manganese ore supply
chain, and heralds the beginning of a mutually beneficial business
journey for both companies. As the cooperation continues, it is
expected to bring more innovation and development opportunities to
the global steel and wood processing industries.
About Caravelle International Group
Caravelle is a global ocean technology company. Its business
comprises of two sectors: the international shipping, operated by
the Topsheen Companies (Topsheen Shipping Group Corporation
(Samoa) and its subsidiaries) and
the new timber drying business under Singapore Garden Technology
Pte. Ltd.. Caravelle is headquartered in Singapore.
Forward Looking Statements
This announcement contains "forward-looking" statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. All statements,
other than statements of historical fact, including, without
limitation, those with respect to the objectives, plans and
strategies of the Company set forth herein and those preceded by or
that include the words "believe," "expect," "anticipate," "future,"
"will," "intend," "plan," "estimate" or similar expressions, are
"forward-looking statements". Such statements include, but are not
limited to risks detailed in the Company's filings with the U.S.
Securities and Exchange Commission. These forward-looking
statements involve a number of risks and uncertainties, which could
cause the Company's future results to differ materially from those
anticipated. Should one or more of these risks or uncertainties
materialize, or should underlying assumptions prove incorrect,
actual results may vary materially from those indicated or
anticipated by such forward-looking statements. All information
provided in this press release is as of the date of the
publication, and the Company does not undertake any obligation to
update any forward-looking statement, except as required under
applicable law.
Contact
Caravelle International Group
60 Paya Lebar Road
#05-47 Paya Lebar Square
Singapore 409051
Email: info@caravelleglobal.com.cn
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SOURCE Caravelle International Group