The Shanghai Baosteel Group Corp.
, China's largest steel producer
, is to cooperate with the China State Shipbuilding Corporation
(CSSC) to construct the country's largest shipbuilding base.
According to an agreement signed last Friday, the Baosteel and CSSC will jointly invest 10 billion yuan (1.25 billion U.S. dollars) to build the No. 1 and No. 2 production lines at the Jiangnan Changxing Shipbuilding Base, located at the estuary of the Yangtze River
Baosteel will take a 35-percent stake and CSSC a 65-percent stake in the two production lines, which are designed to manufacture ships with 4.5 million dead weight tons (dwt) annually.
Construction of the lines had begun and the project had attracted orders for ships with combined capacity of more than seven million dwt, sources with the project was quoted as saying by China Securities
CSSC, parent company of 60 subsidiaries covering ship building, ship repair, research and development and offshore engineering, posted a profit of more than five billion yuan last year, more than 60 times that of 1999 when it was established.