China's state-run shipping giant Cosco has announced it has signed agreements with four domestic yards for the construction of a total of eleven 19,000teu container vessels.

Dalian Cosco KHI Ship Engineering (DACKS) and Nantong Cosco KHI Ship Engineering (NACKS) will build six of the vessels, CSSC-affiliated Waigaoqiao Shipbuilding will build three, and the remaining two will be constructed by CSIC-affiliated Dalian Shipbuilding Industry.

Total price for the vessels is approximately US$1.51bn. Cosco said that the orders are part of its fleet upgrade plan and it will finance the ships from internal resources and bank borrowings.

Cosco has suspended stock trading since Aug. 10 to work on a major restructuring deal, which is very likely to be the merger deal with China Shipping Group.