by Donald Wood
Last updated: 12:05 AM ET, Thu February 23, 2017
On Wednesday, the Carnival Corporation signed a new memorandum of agreement to order the first-ever cruise ships built in China for the Chinese market.
While the initial memorandum of agreement was signed in September 2016, the new agreement updates the terms and conditions of the partnership between the Carnival Corporation, the China State Shipbuilding Corporation and their partners.
The new memorandum of agreement was signed during a ceremony at the Great Hall of the People in Beijing, which hosted Chinese President Xi Jinping, Italian President Sergio Mattarella and representatives from the Carnival Corporation and the China State Shipbuilding Corporation.
The renewed focus on cruise industry growth is part of China's five-year economic development plan.
"We are proud to order the first China-built cruise ships and play a meaningful role in developing cruise shipbuilding capabilities for the first time in China," Carnival Corporation CEO Arnold Donald said in a statement. "This represents another important milestone in building a sustainable and prosperous cruise industry, and demonstrates our commitment to contributing to China become a leading cruise market as part of its five-year economic development plan."
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As part of the new memorandum of agreement, Carnival Corporation's joint venture in China has agreed to order two new cruise ships to be built by another joint venture between the China State Shipbuilding Corporation and Italy-based Fincantieri S.p.A., with an option to order four additional China-built cruise ships.
In addition to operating the cruise ships in the Chinese markets, the Carnival Corporation plans to launch the first multi-ship cruise brand in China. The vessels will be built specifically for Chinese travelers, and the first ship is expected to be delivered by 2023.
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