STX to Set Up Subsidiary in China

STX Shipbuilding Co said Tuesday it plans to make an initial investment of 35 billion Korean Won to set up a wholly-owned subsidiary in , STX () Business, reports said.

STX Shipbuilding said in a statement to regulators that STX () Business would be in charge of management and leasing of STX's facilities in .

STX Shipbuilding would be the first Korean company to build a shipyard in , and the first Korean-owned overseas shipyard capable of building a whole vessel. However, Samsung Heavy and Daewoo Shipbuilding have built (or are currently building) facilities outside for ship blocks, i.e. iron structures that form a ship.

STX has invested $1b in to build a shipyard comprising production facilities, engine assembly plants, a factory block and facilities for molding and forging in the first half of 2008.

STX expects sales of $3b from its shipyard in by 2012.

Source:  China Knowledge