The fund, in turn, will make a capital contribution to CIMC Offshore in US dollar equivalent to RMB1bn ($145.4m), according to an announcement by China International Marine Containers (Group) Co (CIMC Group), parent of CIMC HK.
Future Industry Investment Fund, set up by National Development and Reform Commission (NDRC), China’s Ministry of Finance (MOF) and Ministry of Industry and Information Technology (MIIT), uses central government funds to invest mainly in the manufacturing industry to help in upgrades and reforms.
“CIMC Offshore becomes the first marine equipment enterprise to be invested by Future Industry Investment Fund, which will be beneficial to the research, design and construction of high-end offshore equipment of the offshore operation of the group,” CIMC Group stated.
It added that the investment by the fund will also “facilitate the localisation of major equipment manufacturing to achieve new breakthroughs, so as to further enhance the capacity for the offshore operation of the group to implement offshore strategy of the country and innovation development.”
Upon completion of the transaction, CIMC HK will own 85% share of CIMC Offshore. CIMC Offshore will use the proceeds of the investment to expand, research, development its principal businesses of manufacturing, designing and constructing of various offshore vessels and equipment.
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