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Wonson International to buy China's Jiangxi Jiangzhou Shipyard

Wonson International to buy China's Jiangxi Jiangzhou Shipyard

Hong Kong:  Metals and securities trader, Wonson International Holdings, has announced that it is to purchase China-based Jiangxi Jiangzhou Shipyard for HK$3.5bn ($449m) from Million King Investments.  The purchase, fuelled by rising Asian demand for vessels, will consist of a combination of cash and notes (convertible into shares). In a statement, the company said that it "considers the diversification of business into new areas of high-growth potential will be in the best interest of the company and its shareholders."

Woson International plans to expand capacity and improve manufacturing processes at the yard, which currently produces vessels up to 16,500 tons, cranes and electrical appliances. The yard will have an annual capacity of 250,000 tons by 2010, allowing it to build 16 to 18 vessels of about 10,000 tons each or multi-purpose vessels or chemical product tankers of 20,000 tons each. The company hopes that the low manufacturing costs will make the yard more attractive than its South Korean and Japanese rivals. 

Jianxi Jianzhou Shipyard, which was established in the PRC on 25 December 2006, began operations on 16 June 2005. Spread over 3,780,000sq mtr, it hosts three large indoor plants, 500mtr of out-fitting quayand has two large outdoor building berths under construction. The total orders of vessels at the yard, mainly from German clients, currently amount to RMB 7,300m ($983.3m).  [15/11/07]