SITC International signed in Shanghai

25 Nov 2010

On November 24,2010, SITC International Holdings Company Limited (“SITC International” or the “Company”, SEHK stock code: 1308) announces it signed contracts to commission [Yangfan Group Co. Ltd.] to construct 4 container vessels for an aggregate consideration of US$72.40 million as part of the effort to expand its fleet.

To meet with the Company’s rapid business expansion and the increasing market demand for its transportation and logistics services, SITC International has signed two batches of shipbuilding contracts since it became a listed company. Together with this latest batch of contracts just signed in Shanghai, the Company has commissioned construction of 7 container vessels at a total consideration of US$129.7 million, which will be financed by part of the proceeds from the Global Offering.

On the top of these, the Company has also entered into contracts that allow for it options to construct of four additional 1,100-TEU-class gearless container vessels with DWT of 11,850 tons at a total consideration of US$72.40 million. The options for two of the vessels are exercisable at any time before 30 June 2011 and the options for the remaining two vessels are exercisable at any time before 30 August 2011.

On 17 November, the Company signed shipbuilding contracts with the Korea shipyard Dae Sun Shipbuilding & Engineering Co., Ltd., to construct 3 container vessels for a total consideration of US$57.30 million. The Company signed today contracts to commission [Yangfan Group Co. Ltd.] to construct 4 container vessels for US$72.40 million in aggregate.

Mr. Yang Shaopeng, the Company’s Chairman of the Board and Executive Director, said:”There is hugh and rapidly growing demand for shipping logistics services in Asia. As the leading participant in the industry, SITC International has been adopting a strategic perspective in its business development planning, enabling us to time appropriately the expansion and composition optimization moves for our fleet, strengthen and expand our intra-Asia service network; and enhance our service capabilities. The 4 container vessels we commissioned to construct today represent one of the steps we made in expanding our self-owned fleet of container vessels. Our goal is to expand the size of our fleet to 60 vessels within the next three years from the current 42, and to 80 in five years. As our business continues to expand, we will continue to refine our unique business model, expand our intra-Asia service network and replicate our integrated services model within our network, as part of our efforts to become a world-class integrated logistics solutions provider.”

SITC International Holdings Co., Ltd, press release