Norway group asked to invest in China

PUBLISHED : Wednesday, 15 November, 1995, 12:00am
UPDATED : Wednesday, 15 November, 1995, 12:00am

CHINA has invited the Norway's Kvaerner Group to invest in building a shipyard complex on a greenfield site near Shanghai, according to Lloyd's List.

It said the China State Shipbuilding Corp (CSSC) had approached Kvaerner with a proposal for participation in a US$400 million yard at Pudong.

It wants the Norwegian organisation to cover half the capital expenditure, as the central plank of a possible partnership deal.

CSSC has spent $2 million on the site, which covers an area of two million square metres.

It is intended for the construction of vessels of up to 300,000 dwt.

The move provides a new response to Kvaerner's long-standing interest in some form of joint venture in the internationally-emerging Chinese shipbuilding industry.

The company started talks more than two years ago with CSSC, and initially set its sights on the extensively modernised Dalian New Shipyard, in the north-eastern province of Liaoning.

However, CSSC has made clear that Dalian will not be opened to any involvement by the Scandinavian shipbuilding, offshore and engineering specialist, in the near future at least.

The CSSC is, instead, trying to divert Kvaerner's attention to one of the industry's 10 other large yards. Alternatively, it is trying to get the company to take as major share in the development of Pudong.