The Evergreen Group (長榮集團) has placed an order with CSBC Corp, Taiwan (CSBC, 台灣國際造船) to build 10 container vessels for US$1.03 billion with delivery set to start in the fall of 2013 or earlier, both firms said in separate statements yesterday.
Evergreen Group has ordered 20 similar vessels costing about US$2 billion from Samsung Heavy Industries Co since July last year.
Evergreen Group vice -chairman Bronson Hsieh (謝志堅) and CSBC chairman Paul Tang (譚泰平) signed the contract at the former’s headquarters in Taipei yesterday morning.
Photo: CNA
The deal came after a year and a half of courting on the part of the state-run shipyard after it lost two similar orders to South Korean rival Samsung Heavy Industries in July and September last year.
“The order of L-class, 8,000-TEU environmentally advanced vessels is part of the Evergreen Group’s new shipbuilding program,” said the conglomerate, whose members include Evergreen Marine Corp (長榮海運), the nation’s largest and the world’s fourth-largest shipper.
It is the first time the ocean carrier has placed an order with CSBC since 1997, according to Evergreen’s statement.
As with the previous two orders, the latest 10 ships will have an overall length of 334.8m, a beam of 45.8m and a maximum draft of 14.2m, the group said.
With fuel-saving features and highly efficient operation, the vessels are designed to provide shippers with an upgraded delivery service as well as reduced carbon emissions, the group added.
Three of the new vessels will be built for Evergreen Marine, four for Evergreen Marine (UK) Ltd, and the remaining three for Evergreen Marine (Singapore) Ltd the statement said, adding all would be used for global services on different routes.
Evergreen Group chairman Chang Yung-fa (張榮發) said last year that Evergreen Marine would spend more than US$5 billion to add 100 ships to its current fleet of 81.
In addition to its 81 container ships, Evergreen charters another 69.
CSBC declined to comment on potential earnings the order may generate. A CSBC official said anonymously the ongoing appreciation of the New Taiwan dollar may wipe out any profits given the terms agreed on.
“CSBC secured the order at the same prices in US dollars as Samsung Industries won the two orders last year,” the official said by telephone yesterday. “The gains in the NT dollar will eat away at profits.”
Shares of CSBC rose 1.73 percent to NT$29.35, while those of Evergreen Marine fell NT$1.73 percent to NT$25.5 on the Taiwan Stock Exchange yesterday.
The New Taiwan dollar is on the verge of overtaking the yuan as Asia’s best carry-trade target given its lower risk of interest-rate and currency volatility. A strategy of borrowing the New Taiwan dollar to invest in higher-yielding alternatives has generated the second-highest return over the past month among Asian currencies behind the yuan, based on the Sharpe ratio that measures risk-adjusted relative returns. The New Taiwan dollar may soon replace its Chinese peer as the region’s favored carry trade tool, analysts say, citing Beijing’s efforts to support the yuan that can create wild swings in borrowing costs. In contrast,
Nvidia Corp’s demand for advanced packaging from Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) remains strong though the kind of technology it needs is changing, Nvidia CEO Jensen Huang (黃仁勳) said yesterday, after he was asked whether the company was cutting orders. Nvidia’s most advanced artificial intelligence (AI) chip, Blackwell, consists of multiple chips glued together using a complex chip-on-wafer-on-substrate (CoWoS) advanced packaging technology offered by TSMC, Nvidia’s main contract chipmaker. “As we move into Blackwell, we will use largely CoWoS-L. Of course, we’re still manufacturing Hopper, and Hopper will use CowoS-S. We will also transition the CoWoS-S capacity to CoWos-L,” Huang said
Nvidia Corp CEO Jensen Huang (黃仁勳) is expected to miss the inauguration of US president-elect Donald Trump on Monday, bucking a trend among high-profile US technology leaders. Huang is visiting East Asia this week, as he typically does around the time of the Lunar New Year, a person familiar with the situation said. He has never previously attended a US presidential inauguration, said the person, who asked not to be identified, because the plans have not been announced. That makes Nvidia an exception among the most valuable technology companies, most of which are sending cofounders or CEOs to the event. That includes
INDUSTRY LEADER: TSMC aims to continue outperforming the industry’s growth and makes 2025 another strong growth year, chairman and CEO C.C. Wei says Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), a major chip supplier to Nvidia Corp and Apple Inc, yesterday said it aims to grow revenue by about 25 percent this year, driven by robust demand for artificial intelligence (AI) chips. That means TSMC would continue to outpace the foundry industry’s 10 percent annual growth this year based on the chipmaker’s estimate. The chipmaker expects revenue from AI-related chips to double this year, extending a three-fold increase last year. The growth would quicken over the next five years at a compound annual growth rate of 45 percent, fueled by strong demand for the high-performance computing
RSS