China State Shipbuilding Corporation’s listed units CSSC Holdings and CSSC Offshore & Marine plan to bring in major investors to inject about 10.2 billion yuan ($1.6 billion) of capital into four shipyards.
China’s shipyards have been suffering from a prolonged downturn in the shipping industry and both companies said the planned capital increases were part of the government’s wider “supply-side structural reform policy”.
China CSSC Holdings Ltd is bringing in investors, such as China Life, CPIC Property and PICC, to invest 5.4 billion yuan in Shanghai Waigaoqiao and Chengxi Shipyard, it said in a filing to the Shanghai stock exchange on Thursday.
In a separate statement, CSSC Offshore & Marine Engineering Group Co Ltd said the same group of investors planned to increase the capital of Guangzhou Shipyard International and Huangpu Wenchong by a combined 4.8 billion yuan. ($1 = 6.3193 Chinese yuan renminbi) (Reporting by Lee Chyen Yee in SINGAPORE, Twinnie Siu in HONG KONG and Brenda Goh in SHANGHAI; editing by Alexander Smith)