Shipyard secures crane contract

PUBLISHED : Tuesday, 28 April, 1998, 12:00am
UPDATED : Friday, 28 October, 2016, 9:17am

H share Guangzhou Shipyard International has secured a 50 million yuan (about HK$46.55 million) crane manufacturing contract, the first since the beginning of the year, according to chairman Hu Guoliang.

Mr Hu said the regional crisis had not been responsible for the recent slowdown in contract signings.

'It's not unusual. We're going to sign another contract soon to build ships for a big mainland company,' he said.

The crane contract involved the building of eight tower cranes for the River Trade Terminal in Hong Kong, he said.

'The financial crisis has had little impact on our company as our customers are mostly based in Europe and the mainland,' Mr Hu said.

Guangzhou Shipyard saw attributable profit recover almost 20 per cent to 39.68 million yuan last year from 1996.

However, the profit figure was still well below the 101 million yuan the company recorded in 1995.

Mr Hu said the company was in the process of manufacturing 20 vessels worth 3.6 billion yuan, of which seven would be completed this year.

However, he would not say how much income would be generated from completions booked this year.

He said the company hoped to raise production capacity by one vessel each year to 10 by 2000.

To boost capacity, Guangzhou Shipyard had recently invested US$5 million buying a 'hi-tech production line' and machinery from a Japanese-based ship-maker, he said.