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CSCL, CSDC get $169m of subsidy for scrapping vessels

CSCL, CSDC get $169m of subsidy for scrapping vessels
China Shipping Container Lines (CSCL) and China Shipping Development Co (CSDC) have received a combined RMB1.05bn ($169.08m) in government subsidy under the scrap-and-build policy.

CSCL received approximately RMB127m and CSDC pocketed approximately RMB925m, with the funds channeled through their parent firm China Shipping Group (CSG), the companies announced to the stock exchange.

CSCL said the subsidy for the retirement and replacement of ships will have a positive effect on its 2015 annual results.

CSDC, on the other hand, said the subsidy received for the disposal and retrofitting of vessels was already taken into account when preparing for its management accounts in early July, on which the company warned of a net loss of around RMB130m due to non-operational items.