Odfjell enters into Joint Venture with Founder Group
New joint venture agreement in China for Odfjell Terminals
Odfjell Terminals has today signed an agreement to enter into a joint venture with the Founder Group to become 50/50 partners for the development of a petrochemical tank terminal in Quanzhou, Fujian Province, China.
Odfjell Terminals will acquire from the Founder Group a 50% equity share in the existing Fujian Fangtong Terminals Co Ltd., including the land and an existing jetty at a price of USD 21 million. The purpose is to construct a new tank terminal that Odfjell will manage and operate.
The new terminal is to be located in the Quangang Industrial Zone at the mainland side of the Taiwan Strait, at the south side of Meizhou Bay. Quangang is the most central and progressing region of the “10th five-year” plan of Fujian Province. As one of the second batch of national economic model areas, it has also become the forerunner of the Meizhou Bay petrochemical base. 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.
The technical design review and engineering scope are in progress. Basic design is planned to be completed and ready for project tender by end of 2013. The planned total investment in the terminal is USD 137 million.
The future Odfjell Terminals Fujian (Quanzhou) Co. Ltd has 14.8 hectares of available land, making possible the construction of 184,000 cbm of total storage capacity, supported by two jetties (5,000 dwt and 100,000 dwt). In addition, the new joint venture will have the option to acquire an additional 23 hectares of adjacent land to expand the facility’s storage capacity by an estimated 400,000 cbm. Odfjell Terminals Fujian (Quanzhou) is planned to be in operation by 1st Quarter of 2016.
“We are pleased to announce that Odfjell Terminals is embarking on another large tank terminal project in China, adding to its two existing terminals and the new terminal already under construction in Tianjin.” Jan A. Hammer, CEO/President at Odfjell SE, furthers states that: “We have found a very solid and reliable partner for this project in the Founder Group, which is a corporation owned by the Peking University in China”.
The transaction will be consummated through Odfjell Terminals (China) Pte. Ltd., a subsidiary of Odfjell Terminals AS, which is the Joint Venture Company owned 51% by Odfjell SE and 49% by Lindsay Goldberg.