China COSCO to Buy Its Unit’s Shipyards

Image Courtesy: COSCO Shipyard Group

China COSCO Shipping Corporation plans to acquire shipyards owned by its subsidiary COSCO Corporation (Singapore) Limited.

Under the plan, China COSCO will take over equity interests in COSCO Shipyard Group, COSCO (Nantong) Shipyard and COSCO (Dalian) Shipyard.

The acquisition is part of China COSCO’s plan to centralize operations and management of the shipyard businesses.

“The plans relating to the proposed acquisition will be further reviewed and determined after further necessary work, including a valuation of the assets to be acquired, has been completed,” COSCO Corporation said.

In addition, the firm said it didn’t reach a final agreement with any party to proceed with the transaction.

In late-2016, China COSCO decided to integrate all of its shipbuilding assets into one unit – COSCO Shipping Heavy Industry (CSHI). Following the establishment of CSHI, all thirteen shipyards are managed by the new unit. With this move, CSHI has become China’s third-biggest shipbuilding group.

The announcement on the acquisition of COSCO Corporation’s shipbuilding businesses comes on the back of the firm’s financial results for 2016. COSCO Corporation posted a net loss of SGD 976.1 million (USD 695.5 million) in 2016, against a net loss of SGD 914.8 million (USD 651.8 million) recorded in 2015, mainly due to losses in its shipyard and shipping operations.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Jan 2018 >>
MTWTFSS
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31 1 2 3 4

APM – ASIA PACIFIC MARITIME 2018

27 years in the making, APM is the premier shipbuilding & marine, workboat and offshore exhibition in Asia trusted by generations of industry professionals.

read more >

Mega Cargo Show 2018

The focus of the event is to bring all connected with cargo fraternity on a single platform…

read more >

Vietship 2018

Vietship is the largest and longest established exhibition in Vietnam featuring all aspect of Shipbuilding, Shipping and Offshore Technology.

Since its first event in 2002, Vietship has become the convergence and platform of advanced technologies regional and worldwide in shipbuilding and ship repair, marine equipment, waterway transportation and services, marine and offshore engineering.

After 16 years of eight consecutive editions, Vietship has affirm itself as an important event in enhancing cooperation and development, attracting investments, exchanging technology and creating ideal opportunities for trade promotion in the international maritime industry.

More info

read more >

LNG Bunkering Summit 2018

The conference will cover the obstacles facing both the shipping and port communities, exploring developments in conversion and new builds…

read more >