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[STX Pan Ocean] Entering the World’s Wood Pulp Transportation Market

2012-09-06

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- Bought 57,000-DWT Open Hatch General Cargo Carrier “STX Arborella”

- First deployed for a long-term contract with Fibria

STX Pan Ocean has successfully bought its first Open Hatch General Cargo Carrier (OHGCC) to be deployed for a long-term transportation contract with Brazilian company Fibria and spurs its launch into South American wood pulp transportation market.

STX Pan Ocean held a christening ceremony for the STX Arborella, a 57,000-DWT OHGCC at STX Offshore & Shipbuilding’s Jinhae Shipyard on September 6th, attended by President Pae Seong-ryung of STX Pan Ocean and Mr. Marcelo Strufald Castelli of Fibria with about 60 others concerned from STX Pan Ocean, STX O&S and Fibria.

STX Arborella, 200m long, 32m wide and 19m high, can ship more than 55,000-tons of wood pulp as the largest-scale ship of the Supramax-grade open hatch ship type.

STX Pan Ocean signed a contract for specialized vessels worth USD 5 billion with Fibria of Brazil, the world’s largest pulp production company in October 2010. Subsequently, in October 2011, it signed an additional transportation contract worth USD 246 million.

The ship is the first of a total of 230 OHGCCs ordered by STX Pan Ocean and will be deployed in the sea route that plies between Brazil and the Americas, Europe and Asia, beginning in September, and it will implement a project to carry all of Fibria’s exported wood pulp freight for 25 years. The rest of the ships are scheduled to be delivered in due order by 2014.

The STX Arborella was optimally designed to suit the characteristics of wood pulp freight which is carried by STX Pan Ocean. This ship is expected to contribute to Fibria being able to maintain its distribution cost competitiveness, leading the market in the future and present an opportunity for STX Pan Ocean to strengthen its status as the leading maker of specialized shipping vessels in the world’s wood pulp market.

The South American wood pulp transportation market is known to have been almost exclusively monopolized by shipping companies from northern Europe. Under such circumstances, having signed a long-term carriage contract for 25 years and being the first among Asian-based shipping firms to launch itself into wood pulp market, fortifying its status as a leading company while sideswiping existing European shipping companies, STX Pan Ocean has become capable of securing an advantage in order to expand to further expand its scope of business in future.

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