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DSME bags VLOC order

28 Oct 2009
Daewoo Shipbuilding & Marine Engineering Co. (DSME) has received a $460 million order to build four very large bulk carriers. The Korean shipbuilder identified the customer only as "a client in Southeast Asia" but speculation suggests it is either the Brazilian mining company Vale or a shipowner who will charter the newbuildings to Vale.

Vale has been reticent about its extensive ore carrier building program in Korea as it has been criticized by Brazilian President Lula da Silva for not building the ships in Brazilian yards. The $460 million price tag for the VLOCs is a small part of Vale's overall capital expenditure program which would reach $12.9 billion in 2010. Vale said it would "continue to invest a sizeable amount of funds in railroads, maritime terminals, shipping and power generation."