COSCON, part of Hong Kong-listed COSCO Holdings Ltd, is to splash out USD1.36 billion on an order for 20 container ships from China's Yangzijiang Shipbuilding.

The vessels are due to be delivered between August, 2011, and June, 2012, and all have a 4,250TEU capacity ?a mid-size model that is becoming extremely popular, due to its suitability to be deployed on various trades.

This is the latest deal by the group in its bold expansion strategy. In April, 2007, COSCO, inked contracts and letters of intent for 66 new-buildings which included container vessels, bulk carriers, tankers and car carriers with a dwt total exceeding 5 million tonnes.

Last week, COSCO raised its earnings forecast for 2007, by 50% to CNY18.2 (USD 2.47) billion. The company explained: the conditions in the international shipping market in the second half of 2007 were better than the forecast conditions.