26 June 2013 11:47 [Source: ICIS news]
SINGAPORE (ICIS)--Odfjell will develop a new $137m (€104m) petrochemical tank terminal at Quanzhou in China’s Fujian province, with China-based Founder Group as partner, the Norwegian logistics firm said on Wednesday.
As part of the deal, Odfjell Terminals will buy Founder Group’s 50% equity in the existing Fujian Fangtong Terminals for $21m (€16m), Odfjell said in a statement.
Odfjell Terminals is a 51:49 joint venture firm between Odfjell and Lindsay Goldberg.
The proposed new terminal in China will have 183,000 cubic metres (cbm) of storage capacity and supported by two jetties and will be built at the Quangang Industrial Zone. The terminal will be operated by Odfjell Terminals Fujian (Quanzhou), which is a 50:50 joint venture firm of Odfjell Terminals and Founder Group, it said.
“Quangang has an unique deep water coastline situated between Guangdong province and Zhejiang province/Shanghai and can be developed to become a future transhipment and distribution hub for South China in addition to serving its own local Meizhou Bay Petrochemical Industry,” Odfjell said.
Odjell added that the technical design review and engineering scope for the terminal are in progress, with its basic design scheduled to be completed and ready for project tender by the end of this year.
The joint venture company will also have the option to acquire land adjacent to the proposed site of the new terminal to expand the facility's storage capacity by an estimated 400,000 cbm, it said.
Odfjell Terminals Fujian (Quanzhou) is expected to be in operation by the first quarter of 2016.
($1 = €0.76)
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