Guangzhou Shipyard outsources contracts

PUBLISHED : Wednesday, 21 November, 2007, 12:00am
UPDATED : Wednesday, 21 November, 2007, 12:00am

Guangzhou Shipyard International said yesterday it was exploring a new partnership model with its sister company to increase capacity.

Guangzhou Shipyard outsourced two contracts to Guangzhou Huangpu Shipyard, said company secretary Li Zhidong. However, the contractor is still in charge of designing the two 50,000 dwt semi-submersible vessels and managing the project, the most profitable aspect.

The market speculated that co-operation would continue, resulting in improved profitability.

'This is a trial run. We will adapt the model to other projects if it proves successful,' said Mr Li.

Guangzhou Shipyard's net profit soared more than 317 per cent to 215.8 million yuan in the third quarter from a year earlier.

Shares of Guangzhou Shipyard rose 7.81 per cent to HK$51.75 yesterday.