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CIMC increases holdings in Chinese box makers

CIMC increases holdings in Chinese box makers

Shanghai: China International Marine Containers Co. (CIMC), the world's largest manufacturer of container boxes, has increased its equity interest in two Chinese box makers at a cost of $30.4m, writes Sched Net. This move comes after a report in the Hong Kong Shipping Gazette on December 22 that CIMC has come into a slack season earlier than ever and that production of the whole industry had stopped, or nearly so.

Shenzhen-based CIMC is said to have acquired an additional 20% share in Shanghai CIMC Reefer Containers Co for $16.4m, to raise its total share in the company to 92%.

It also spent $14m to purchase a further 22.5% of Tianjin Zhongji Beiyang Container Co to become the sole owner of the company, according to a statement CIMC filed to the Shenzhen stock exchange, reports Bloomberg. It added that CIMC acquired the stakes from its biggest shareholder Cosco Pacific Ltd.

From January to September, CIMC's dry container sector accounted for 46% of the group's operating revenue and 32% in the group's net profit. The group said the other businesses than dry box are remaining stable in the fourth quarter.

In 2007, the group's dry box business took up 51% in the total operating revenue and 22% in net profit. During the fourth quarter last year, its dry box business recorded a revenue volume of $830m, taking up 11.64% of the group's annual total, while profit recorded $38.8m, taking up 8.39% of the annual total.  [30/12/08]