Hudong to Invest in Shipyards and Tech
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 Starts Work On Shipbuilding Center
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.
