HONG KONG (Bloomberg) — Grand China Shipping plans to expand its fleet and boost ties with Zhoushan Jinhaiwan Shipyard as the economic slowdown depresses vessel prices.

The company will have "deeper cooperation" with Zhoushan, with whom it has already placed orders, managing director Sun Che said in a phone interview on Monday. He declined to elaborate further, saying talks were still under way. The company has agreed to buy 30 new dry-bulk ships from Zhoushan and to buy half of the shipyard, China Daily reported last week.

Grand China plans to expand because vessels prices have fallen as much as 60 percent from a year earlier, Sun said. Ship prices and cargo rates have tumbled because of overcapacity in the global fleet and China's waning demand for iron ore imports.

Grand China Shipping, which has 10 dry-bulk ships, is adding routes to Southeast Asia, Australia, Africa and South America this year, according to its Web site.