Bestobell Marine is celebrating after securing a major new contract with Hudong Zhongua shipyard in Shanghai, to supply cryogenic globe and check valves for use on the four Teekay shipping vessels to be chartered by BG Group.
The contract will also see Bestobell supply its unique Float Level Insulation Valves (FLIV).
This latest order takes the total number of Chinese vessels using Bestobell’s valves to 14, helping the company secure its position as a major supplier of cryogenic globe and check valves for liquefied natural gas carriers (LNGC) in China.
China is expected to increase its market share of the new build market for LNGC over the next five years, as the Chinese Government signs contracts to import LNG, requiring the accompanying ships to be built in China.
This latest contract follows on from two separate Chinese contracts in the past two years, including the supply of valves to four Mitsui O.S.K Lines (MOL) vessels to be chartered by Exxon Mobil, and six China Shipping / MOL vessels to be chartered by Sinotrans for their Australia Pacific LNG project.
Duncan Gaskin, Sales Director of Bestobell Marine, enthused, “We are delighted to have secured our third major contract with Hudong Zhongua shipyard. Three years ago we had no market share in China and we are now a major supplier of cryogenic globe and check valves for Chinese ships.”
“The use of LNG as fuel for ships is rising rapidly in China and we are excited about the opportunities to further expand our market here.”
Bestobell’s latest contract win is a result of its close relationship with its agent in China, Healthlead Development, which has well established connections with many of the major shipbuilding companies in China.
Tommy Zhang, Head of Healthlead’s Shanghai Office, added, “China is a very special market for foreign companies to do business, and relationships and local knowledge count for more here than in any other market. We have worked closely with Bestobell to guide them in technical and commercial negotiations in China, resulting in a successful business outcome for all parties.”
Further, Zhang sees more opportunities opening up in the future. He continued, “We see exciting opportunities ahead for both companies as many new shipyards in China begin to build LNGCs and Hudong expands its production capacity.”