Singamas Container Holdings says it has entered into a joint-venture agreement with Shunde Shun An Da Container Manufacturing to build dry-freight and specialised containers in Shunde, Guangdong.
Shun An Da has been in operation since 1992. It produces mainly ISO dry-freight containers and 45-foot/48-foot specialised boxes.
After the signing of the agreement, Shun An Da will inject all its assets into the new company and the factory will be renamed Shunde Shun An Da Pacific Container Co (SSPC).
Singamas will take a 40 per cent equity stake in SSPC at an investment cost of US$7.2 million. The investment will be financed by internal resources.
Singamas' co-operation with Shun An Da began in September 1999 under a commercial management agreement. The factory has two production lines, with an annual capacity of 150,000 teu (20 ft equivalent units).
Singamas operates five container-manufacturing factories in China, which include the newly added SSPC factory at Shunde and another in Surabaya. It also operates two container depots in Hong Kong.