CSIC poised to reach agreement on major restructuring

China Shipbuilding Industry Corporation (CSIC) has revealed that the group is poised to enter into a restructuring agreement with an unnamed party by 15 September, a deal that is expected to round up the group’s ongoing consolidation exercise amid the shipbuilding industry downturn.

In a regulatory filing to the Shanghai Stock Exchange, the state-owned shipbuilder said it expects to sign the major restructuring agreement by next week, without shedding more details on the deal.

Since 31 May 2017, CSIC has suspended its shares trading on the stock exchange pending the outcome of the restructuring discussions.

CSIC has already implemented and completed some of its internal restructurings over the past year to respond to the overcapacity problem that is the main cause of the protracted slump of the shipbuilding market.

For the group’s marine propulsion subsidiaries, it has integrated the assets of Yichang Marine Diesel Engine, Dalian Marine Diesel Engine and Qingdao Haixi Marine Diesel.

In June 2016, CSIC completed the integration of its two shipyard subsidiaries, with Dalian Shipbuilding Industry Co (DSIC) taking Shanhaiguan New Shipbuilding Industry under its belt.

The assets of Qingdao Beihai Shipbuilding Heavy Industry has also been integrated into that of Wuchang Shipbuilding Industry Group.

Posted 07 September 2017

© Copyright 2019 Seatrade (UBM (UK) Ltd). Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Seatrade.

Lee Hong Liang

Asia Correspondent

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