(Yicai Global) April 10 -- Shares in China State Shipbuilding’s listed subsidiaries surged today after the Chinese shipbuilder said it has scored the country’s largest-ever single contract for container vessels from France’s CMA CGM Group worth CNY21 billion (USD3.1 billion).

Several of CSSC’s nine listed units gained. CSSC Holdings’ share price [SHA:600150] closed up 3.7 percent at CNY24.29 (USD3.53) after soaring 7.9 percent earlier in the day to hit CNY25.28. CSSC Science and Technology [SHA:600072] edged up 0.6 percent to finish the day at CNY15.14 apiece, and CSSC Offshore and Marine Engineering Group [SHA:600685] climbed 0.88 percent to CNY24.13.

CMA CGM has ordered twelve 15,000 twenty-foot equivalent unit methanol dual-fuel-powered large container ships and four 23,000 TEU liquefied natural gas dual-fuel-powered large container vessels, local media reported on April 7, citing the deal signed on April 6. It is CSSC’s first order for methanol fuel container ships.

The shipbuilding industry is expected to soon enter a long-term boom period, according to a report by China Merchants Securities. Although the price of new vessels has been on the rise since last year, the price of raw materials such as marine steel plates has been falling, widening the profit margin. The green transformation of the global shipping industry also means that many old ships need to be replaced with new ones.

Carbon-neutral measures ensure the sustainability of long-term orders, Shenwan Hongyuan Securities said. China's deliveries of new ships are expected to jump this year and to boost profits from the second half.

Editors: Shi Yi, Kim Taylor