Seatrade Maritime is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

CSIC finds funds for offshore investments

CSIC finds funds for offshore investments
Shanghai: China Shipbuilding Industry Co (CSIC) has wrapped up the sale of convertible bonds worth RMB1.3bn ($204m) to invest in shipyard upgrades and to build more offshore vessels.

Shanghai-listed CSIC is seeking to expand its offshore building capacity to collect higher margins as demand for merchant vessels is shrinking due to overcapacity.

The company enjoyed margins of around 18-21% for building offshore and energy-related vessels last year, close to double of the 11% margin for merchant vessels.

The bigger move into offshore is in line with Beijing's aim to raise China's share in the world's offshore building market to 20% by the end of 2015 from 7% in 2010.