Yujin International Ltd ('Yujin' or 'the Group')

Yujin signs four new ship building contracts

Yujin International Ltd, the owner and charterer of a fleet of small range tankers operating in the Asia Pacific region, is pleased to announce that, in line with the Group's strategy set out in their Admission Document, it has signed conditional contracts to build two IMO II Chemical tankers of 5,500 deadweight tonnage (DWT) each, with a shipyard in China. There is an option to build two more tankers of a similar specification with the same shipyard. The contracts are conditional on Yujin receiving satisfactory performance bonds / refund guarantees. Following fulfilment of these conditions, the first of these tankers is expected to be delivered in the fourth quarter of 2010, with the second tanker to be delivered in early 2011.

Over recent months, the price of shipbuilding has decreased dramatically as many shipbuilding contracts have been cancelled, leaving shipyards with spare capacity. This means that shipbuilders are likely to be more competitive on price in order to attract new orders.  Yujin, like a number of other shipping companies, has taken advantage of this reversal of fortunes in the shipbuilding market and despite the fact that the Group had signed contracts in 2008 with a shipyard in China for the construction of four 5500 DWT product tankers, when the required refund guarantees were unable to be provided by the shipyard, the contracts were mutually terminated. A more competitive rate has been negotiated for the present contracts which are also conditional upon Yujin receiving satisfactory performance bonds / refund guarantees.

Captain Joseph Ting, joint Managing Director of Yujin, commented as follows: 'We are very pleased that the Company has secured contracts to build new tankers at a lower price than previously negotiated and in addition, that the dramatic fall in steel prices and production costs has enabled us to ensure that these new tankers will also be of a greater quality than previously envisaged. Not only will the new signings result in significant cost savings but the building of IMO II Chemical Tankers (rather than Product Tankers) will also allow Yujin to cater to the transportation of a wider range of products.' 

For further information please contact:

Yujin International Ltd

Keen Whye LEE                   Tel: 00 (65) 6226 2963

Bernard LIM

Or visit www.yujininternational.com

Seymour Pierce Limited         Tel: 020 7107 8000

Nicola Marrin

Catherine Leftley