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CSSC injects $60.8m to help Chengxi Shipyard

CSSC injects $60.8m to help Chengxi Shipyard
China State Shipbuilding Corp (CSSC) will inject RMB400m ($60.8m) into its loss-making subsidiary CSSC Chengxi Shipyard, in line with a request from the relevant authorities.

Shanghai-listed CSSC said in a regulatory filing that the ministry of finance made the request for the state-owned shipbuilder to revive the ailing Chengxi Shipyard amid the shipbuilding recession.

Chengxi Shipyard reported a loss of RMB58.9m for the eight months up until 31 August 2015, and a deficit of RMB226.06m in 2014.

CSSC explained that the funds will help mitigate the shipyard’s financial instability after its exposure to the offshore sector, which is going through a challenging period due to softening crude oil prices.

Among the RMB400m, RMB111 will be injected into Chengxi Shipyard’s registered capital and RMB289m will be pumped into its capital reserve. “In view of the company’s current financial situation, there will be no cash aid for Chengxi Shipyard for this moment,” CSSC said.