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 November 26, 2015 - 1:00 AM EST
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Aspo's ESL Shipping has signed a long-term agreement for raw material sea transport with SSAB and orders the world's first large LNG-fueled bulk carriers

ASPO Plc   STOCK EXCHANGE RELEASE     November 26, 2015, at 08:00 a.m.

Aspo's ESL Shipping has signed a long-term agreement for raw material sea transport  with SSAB and orders the world's first large LNG-fueled bulk carriers

Aspo Group's ESL Shipping Ltd and the steel company SSAB have signed a long-term frame agreement covering SSAB's inbound raw material sea transports within the Baltic Sea and from the North Sea. The purpose of the agreement is to enable mutual, long-term gains in efficiency and to reduce overall logistics costs, while simultaneously making raw material logistics as sustainable and environmentally friendly as possible. At present, the aggregated sea transport volume covered by the agreement is estimated to be 6-7 million tons annually.

Resulting from the agreement, ESL Shipping will order new, extremely energy-efficient LNG-fueled ships. These new, ice-class 1A ships will be the first LNG-fueled large bulk carriers in the world, representing the latest in technology and innovation. CO2 emissions per ton of cargo transported will be reduced by more than 50% in comparison to present vessels.

"This new agreement is a solid example of SSAB's sustainability strategy in action," says Per Bondemark, Chief Procurement Officer at SSAB.

"ESL Shipping's new customer agreement running for several years will secure growing freight volumes, and the new investments to be implemented will release old vessel stock for other transport needs. Besides their environmental benefits, the cost savings provided by the new technology will also allow better profitability," says Aki Ojanen, Chairman of the Board of ESL Shipping and CEO of Aspo Group.

"We are extremely pleased to continue our long-established sea transport partnership with SSAB. Together we shall make shipping more sustainable and environmentally aware than ever before", says Mikki Koskinen, Managing Director of ESL Shipping. 

The two new vessels will be built at Sinotrans & CSC Qingshan Shipyard in China and will start operating in the Baltic Sea in early 2018. The total value of the investment is approximately EUR 60 million. The investment cash flow will be divided progressively between 2015 and 2018. The construction work is made together with the Finnish designer Deltamarin. ESL Shipping has been working in close cooperation on the ship design and tailor-made the ships according to customer needs. Special attention was given to the efficiency of cargo handling and cargo hold arrangements. The new ship also exhibits efficient operation and extensive model tests have been performed for both water (SSPA) and ice class (Aker Arctic) operations.

Technical data: capacity 25.600 dwt, lenght160 m, breadth 26 m, shallow draft10 m.

ESL Shipping Ltd is the leading carrier of dry bulk cargoes in the Baltic Sea region. The company's main clients are the steel, power generation and chemical industries. Present fleet consists of 14 vessel units, and in 2014 the cargo volume carried was 12.1 million tons. ESL Shipping ensures availability of raw materials for industries and energy production throughout the year even in difficult climate conditions. Special services include loading, topping off and lightering of large ocean carriers at sea.


Aki Ojanen

Further information:
Aki Ojanen, CEO of Aspo Plc, Chairman of the Board of ESL Shipping Ltd, tel. +358 9 521 4010,
Mikki Koskinen, Managing Director of ESL Shipping Ltd, phone +358 9 5211 or +358 50 3517791,,

Nasdaq Helsinki
Key Media

Aspo is a conglomerate that owns and develops business operations in Northern Europe and growth markets focusing on demanding B-to-B customers. Our strong company brands - ESL Shipping, Leipurin, Telko and Kaukomarkkinat - aim to be the market leaders in their sectors. They are responsible for their own operations, customer relationships and the development of these. Together they generate Aspo's goodwill. Aspo's Group structure and business operations are continually developed without any predefined schedules.  

This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Aspo Oyj via Globenewswire


Source: Thomson Reuters ONE (November 26, 2015 - 1:00 AM EST)

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