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Wed 26 Oct 2016 01:57 PM

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Dubai's shipping firm to expand fleet with China's Wuchang Group

Gulf Navigation says agreement will help meet increasing demand for shipping chemicals from GCC to global markets

Dubai's shipping firm to expand fleet with China's Wuchang Group
Image for illustrative purpose only. (Atta Kenare/AFP/Getty Images)

Dubai's Gulf Navigation Holding has signed a deal with China's Wuchang Group to expand its company's fleet, it said on Wednesday.

Dubai's only listed crude shipper said in a statement the agreement would help meet "increasing demand for transferring chemicals from the UAE and other GCC countries to global markets". The statement said Wuchang Group would begin building six chemicals tankers.

Gulf Navigation Holding said in September it had reduced its debt from $36 million to $21 million and hopes to end a long-running dispute with creditors by consolidating all of its borrowing before the end of the year.

The crude shipper expanded ambitiously at the end of the last decade just as oversupply hit the chemical tanker business and transportation rates plummeted.

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