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China International Marine Containers (CIMC) has established two container-making joint ventures in Qingdao.

 Partners in the ventures are Hyundai Precision Industries and the administrative commission of the Jiaozhou Economic & Technological Development Zone.

 The ventures would operate the reefer and dry-freight container facilities owned by Hyundai in Qingdao, according to a source.

 Industry watcheres believe CIMC will take over Hyundai's Qingdao operations in the longer term.

 CIMC will hold a 75.2 per cent stake in Qingdao CIMC Reefer Container and 81.2 per cent in Qingdao CIMC Container.

 Hyundai will hold 16.2 per cent of the reefer venture and 8.4 per cent of the container company, with the remainder in both held by the Jiaozhou commission, World Cargo News reported.

 It said China Ocean Shipping Co had agreed to allow CIMC to take over 47.5 per cent of the shares in Tianjin North Ocean Containers and 22.5 per cent of the shares of Shanghai Far East Containers, whose operations were merged at the end of 1997.

 Subject to resolving outstanding issues between the two firms, CIMC would take over management of the Tianjin and Shanghai plants and market their output.

 Addition of dry-freight capacity in Qingdao, Tianjin and Shanghai will boost CIMC's annual capacity, presently 340,000 teu.

 CIMC also has received an order from Cronos Containers to build cellular pallet-wide containers (CPCs) at its plants in Shekou and Nantong.

 Cronos believes CPCs, which fit all cell guides and slots, will soon become the most popular unit.

 CIMC's entry into the CPC market is expected to accelerate demand for CPC designs. It comes as its new facility at Nantong, with a capacity of 3,000 units per month, is nearing completion.

 A prototype 40 ft cube slim-wall CPC has been built and tested, and production of CPCs in Nantong could begin as early as this month.

 With an expected rise in demand for pallet-wide containers in the next two to three years, CIMC would be well positioned to compete in key demand areas, Cronos said.

 Meanwhile, troubled Korean freight-container maker Jindo is to be bailed out by its main creditor bank.

 Seoul Bank reportedly will exchange US$90 million in debt for a 90 per cent stake in Jindo.



CIMC takes key role in Qingdao joint ventures