China Ocean Industry completes $39m buyout of steel manufacturer

Hong Kong-listed COIG announced on Tuesday that Nantong Huakai has become a wholly-owned subsidiary of the company with its financial results to be consolidated into the financial statements of the company.

The planned acquisition of Nantong Huakai was announced in November 2016. Nantong Huakai was acquired from a Chinese businessman Huo Qi and Nantong Xinda Shipping Technology Development Company.

Jiangsu-based Nantong Huakai is a manufacturer of shipbuilding equipment, marine engineering crane, metallurgical mining machinery and equipment, bridge and building steel structures, ship steel structures and superstructure work.

COIG said in earlier announcements that the acquisition would allow the company to broaden its source of revenue, particularly during the downturn in the shipbuilding industry.

COIG, which changed its name from China Ocean Shipbuilding Industry Group, has also diversified into the car parking business in late-2015.