Shipyard nets orders of $100m
GUANGZHOU Shipyard International has received orders for containers worth HK$100 million for the first quarter of next year, according to a senior executive.
The company has two production lines with an aggregate annual capacity of about 18,000 TEUs (20-foot equivalent units) when operating in one shift and about 36,000 TEUs when in two shifts.
The yard is one of nine mainland state-owned enterprises allowed to float their stocks in Hong Kong and it also has A shares quoted on the Shanghai exchange.
Chairman and managing director Ren Fuwei said the production lines had been stopped for three months at the beginning of this year to upgrade technology.
Container manufacturing represents 38 per cent of the company's total business.
Mr Ren also said the company had acquired a shipbuilder in Shunde, which used to be one of its three partners providing parts for its shipbuilding arm.
The agreement was signed at the end of October, and Guangzhou Shipyard paid 32 million yuan (about HK$42.88 million at the official exchange rate) to wholly own the small shipbuilder.
Following the acquisition, the Shunde subsidiary's production capacity should be strengthened, said Mr Ren.