CSSC boosts repair yard investment in Qinzhou, Guangxi
China State Shipbuilding Corporation (CSSC) plans to increase its investment in its ship repair business in Guangxi, China, by CNY338.3M ($54.6M) to launch its subsidiary by the end of 2015.
The business will be operated by the CSSC Guangxi Shipbuilding and Offshore Engineering (CSSC Guangxi) in Qinzhou, Guangxi, a stock filing of CSSC Holdings, said. CSSC Guangxi currently owns CSSC Guangxi Guijiang Shipyard in Wuzhou, Guangxi, and CSSC Guangxi Xijiang Shipyard in Liuzhou Guangxi.
CSSC Chengxi Shipyard, a ship repair and building subsidiary of CSSC, will invest CNY200M in cash in CSSC Guangxi, with Shanghai Shipyard contributing a floating dock and other repair equipment to the project.
In addition, Guangxi Beibuwan Investment Group, a Guangxi-based state-owned investment vehicle, will make another investment of CNY200M in cash.
CSSC Guangxi plans to reach an annual capacity to repair and convert 120 vessels of less than 150,000dwt for the project in Qinzhou.
The construction period of the project is estimated at 15 months with overall investment of CNY900M.
The Qinzhou project will improve the ship repair networks of CSSC and fill up the vacuum of such industry in Guangxi, CSSC said. The business of CSSC Chengxi Shipyard also faces restraints caused by its inland location.
source:IHSMARITIME360