China COSCO says to pay $1.95 bln for 16 new ships

HONG KONG, May 10 (Reuters) - China COSCO Holdings Co Ltd (1919.HK) said it would pay $1.95 billion for the construction of 16 new ships as part of its shipping fleet expansion.

The listed flagship of the country's top shipping conglomerate said late on Friday that it would pay $1.336 billion for 8 container ships of 13,350 20-foot-equivalent units (TEU) each and 8 dry bulk cargo ships of 205,000 deadweight tons (DWT) for $612.8 million.

Nantong COSCO KHI Ship Engineering Co Ltd, an equally-owned joint venture between China COSCO's parent and Kawasaki Heavy Industries (7012.T), is the builder of the vessels.

For details please see here 0509393.pdf China COSCO had said in April that it would expand its fleet by ordering $2.3 billion worth of new ships and planned to raise its 2008 capital expenditure by 37 percent to 23.3 billion yuan ($3.34 billion) to expand investment in shipping fleet and ports.

Shares of China COSCO have risen over 15 percent so far this year to end at HK$24.8 on Friday. (US$1=HK$7.8=6.987 yuan) (Reporting by Donny Kwok; Editing by Michael Urquhart)