Shipbuilder Makes Foray into Cruise Sector With Carnival Corp. Deal

Under the deal, a recently formed Carnival-CSSC China venture will place orders for two cruise ships to be built by Shanghai Waigaoqiao Shipbuilding Co. Ltd., a CSSC subsidiary, the state-owned shipbuilder said in a filing (link in Chinese) to the Shanghai Stock Exchange on Tuesday.

The agreement also gives the venture an option to order four additional cruise ships, pushing the deal’s total potential value to $4.6 billion.

Shanghai Waigaoqiao will build the cruise liners based on technology provided by Italian shipbuilding titan Fincantieri SPA.

These developments were announced by the three parties during a signing ceremony at the first China International Import Expo in Shanghai Tuesday.

CSSC, China’s largest shipbuilder, has long aimed to break into the cruise building sector, an area dominated by European behemoths Fincantieri, Germany’s Meyer Werft, and France’s Chantiers de l’Atlantique.

The Carnival-CSSC venture also announced that it will purchase two existing ships from Costa Group, another Carnival cruise operator unit outside China.

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