Israel Corp. (TASE: ILCO) subsidiary Zim Integrated Shipping Services Ltd. has placed an order to buy eight container ships from South Korea’s Samsung Heavy Industries Co. Ltd. (KSX:10140) for $1.37 billion. The deal comes six weeks after Zim announced its plan to upgrade its fleet. The company has ordered eight 12,600 TEU ship for delivery by July 2012.
The order has taken shipping sources by surprise, because, until now, Zim has generally bought its ships from rival Hyundai Shipyards. Zim apparently placed its present order with Samsung Heavy Industries because it was available.
In early September, Zim said that it was planning to buy eight new container ships. The company added that it was considering selling or leasing some of the ships to Israel Corp.’s parent company Ofer Brothers, in a parties at interest deal.
Zim declined to confirm or deny the report, saying, “Zim works with a number of shipyards, including Samsung.”
Published by Globes [online], Israel business news - www.globes.co.il - on October 21, 2007
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