Shanghai: China Shipping Group has announced the purchase of the Jiangdu Shipping Company in east China's Zhejiang Province for RMB 3.8bn ($493m) to expand its portfolio into shipbuilding.
The company, renamed China Shipping Industrial Company (Jiangsu), will be responsible for the construction of the group's first shipyard on the eastern coast of Jiangdu by then end of 2008. Although China Shipping currently owns six dockyards in Shanghai and Guangzhou, they are all dedicated to ship repairs, conversions and hull maintenance.
The Jiangdu yard will cover an area of 187 hectares and span 3,500 meters. It is expected to boast an annual capacity of 1.5m dwt in the next three years, and will generate annual sales revenues in the region of $1.2bn. The yard has already signed contracts for 22 ships- mainly Panamax vessels of less than 80,000dwt. It will also construct oil tankers, and a variety of floating docks up to 30,000 tons lifting strength. [04/05/07]
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