Baosteel Group News

China CSSC Holdings (600150) plans to raise up to four billion yuan from a private placement of 60 million shares at not less than $0.6b per share, reports Shanghai Securities News, citing a company filing. The target shares will be offered to up to 10 investors, including China State Shipbuilding Corporation (CSSC), CSSC Holdings’ parent, Baosteel Group and China Shipping Group.   (Source: CapitalVue)

Mitsui O.S.K. Lines, Ltd. announced an agreement with China’s Baosteel Group Corporation to further strengthen the companies’ cooperative relationship. The agreement was reached at an October 13 meeting between MOL President Ashida and Baosteel President He Wenbo at Baosteel headquarters in Shanghai. MOL presented a model of the 300,000-ton iron ore carrier Baosteel Elaboration to Baosteel as well. “In the process of consolidation with other steel mills in China, Baosteel may gradually increase iron ore imports in the future, and transport needs may continue to grow,” Baosteel said.

According to a report from People’s Daily Online, three major central state-owned enterprises (SOEs), China State Shipbuilding Corporation (CSSC), Baosteel Group Corporation and China Shipping (Group) Company, have joined hands to establish CSSC Guangzhou. With a registered capital of $0.4b, it is jointly funded by CSSC, Baosteel and China Shipping with their investment accounting for 60, 30 and 10 percent respectively. (Source: People's Daily Online)

China State Shipbuilding Corp (CSSC) profits almost tripled last year as it boosted output and improved production efficiency, according to chinadaily.com. Net income surpassed $1.93b last year, skyrocketing from 5.2 billion yuan in 2006. It finished 6.55 million deadweight tons of vessels in the past year and received a record order of more than 23 million dwt of ships worldwide, which put its overall amount for orders yet to deliver beyond 50 million dwt. By occupying the global shipbuilding market of 7.5 percent, 10 percent and another 10 percent in ship construction, new orders and total orders respectively; CSSC shrank the gap between itself and the world's largest shipbuilder Hyundai Heavy Industries Co of South Korea, maintaining the second place for two consecutive years.

China State Shipbuilding Co. said it has completed a private offer of $1.6b worth of new shares to strategic investors to fund expansion. The company sold 400 million new shares to eight investors including its state-owned parent at $3.99 a piece, less than one-eighth of its current share price, according to a filing to the Shanghai Stock Exchange. The share placement was initially announced in January by Hudong Heavy Machinery Co, which in August changed its name to China State Shipbuilding. In January, its shares were quoted around $3.99. But the stock has since rocketed, becoming the most expensive on the mainland market, amid fund buying and an injection of assets by its parent. The company has said it will acquire more assets from its parent.

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.

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 a report on http://english.people.com.cn. According to an agreement, the Baosteel and CSSC will jointly invest $1.25 billion 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.

Hudong Heavy Machinery Co., said that it will use proceeds to fund its purchase of shipyards and to invest in new technologies. With the proceeds, Hudong will buy 100% of Shanghai Waigaoqiao Shipbuilding Co. and CSSC Chengxi Shipyards and 54% of Guangzhou Wenchong Shipyard. It will also invest in technology upgrades. The company, which is the biggest maker of diesel engines for ships in China, will sell up to 400 million A-shares at RMB 30 per share in exchange for RMB 9 billion in assets and RMB 3 billion in cash, it said in a statement to the Shanghai Stock Exchange Monday. Hudong’s controlling shareholder, China State Shipbuilding Corp., will buy 59% of the share issue. The other buyers include Baosteel Group Corp., China Life Insurance Co., Shanghai Electric Group Corp.

China has begun work on what will become its biggest and most technically advanced shipbuilding center with an annual capacity of 1.8 million tons. The first stage of the shipbuilding center, located in Shanghai's Waigaoqiao Free Trade Zone along the banks of the Yangtze River, is expected to be completed in three years. It will then have an annual capacity of 1.05 million tons, and contain two 300,000-ton dry docks. Three major Chinese companies, China State Shipbuilding Corp., Shanghai Baosteel Group Corp. and Shanghai Electric (Group) Corp., have set up a company to operate the shipbuilding center. China Shipbuilding will hold more than 50 percent of the company, to be called Shanghai Waigaoqiao Shipbuilding Co.