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Friday, September 18, 2009

Brazil's Vale:May Order Four Domestically Built Bulk Carriers

Friday, 18 September 2009

Brazilian mining giant Vale SA (VALE) has given domestic shipbuilders the opportunity to build four 400,000-metric-ton bulk carriers, the company said. Vale had been under pressure from Brazilian President Luis Inacio Lula da Silva to make investment in domestic industry. Vale met shipbuilder-sector representatives and companies on Sept. 8 to explain its shipping needs.
In a letter to the shipbuilders, released to the media Wednesday, Vale said it had outlined the technical specifications and supply conditions required.
Vale said it had always had the firm intention to build ships in Brazil and that remained its position.
According to Vale, the company held meetings with Brazilian shipbuilders as long ago as November 2007 but had received no replies on possible orders, despite giving them ship-specification proposals.
At that time Brazilian shipbuilders said they didn't have the capacity, Vale said.
Vale said it had now given local shipbuilders until Oct. 15 to put forward their proposals.
In August last year, Vale ordered 12 400,000-ton bulk carriers, also known as Very Large Ore Carriers, or VLOCs, from China's Rongsheng Shipbuilding and Heavy Industries, worth $1.6 billion.
Not all Vale's shipping orders have gone abroad.
Vale placed a $171 million order for 15 tugs and 16 river barges with Brazilian shipyards in January this year.
Source: Dow Jones