CIMC boosts its holdings in two China box makers for US$30 million

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

30 Dec 2008

CHINA International Marine Containers Co. (CIMC), the world's largest manufacturer of container boxes, has increased its equity interest in two Chinese box makers at a cost of US$30.4 million. This move comes after a report in the Hong Kong Shipping Gazette on December 22 that CIMC has come into a slack season earlier than ever and that production of the whole industry had stopped, or nearly so. Shenzhen-based CIMC is said to have acquired an additional 20 per cent share in Shanghai CIMC Reefer Containers Co for $16.4 million, to raise its total share in the company to 92 per cent.
It also spent $14 million to purchase a further 22.5 per cent of Tianjin Zhongji Beiyang Container Co to become the sole owner of the company, according to a statement CIMC filed to the Shenzhen stock exchange, reports Bloomberg.
It added that CIMC acquired the stakes from its biggest shareholder Cosco Pacific Ltd.
From January to September, CIMC's dry container sector accounted for 46 per cent of the group's operating revenue and 32 per cent in the group's net profit. The group said the other businesses than dry box are remaining stable in the fourth quarter.
In 2007, the group's dry box business took up 51 per cent in the total operating revenue and 22 per cent in net profit. During the fourth quarter last year, its dry box business recorded a revenue volume of $830 million, taking up 11.64 per cent of the group's annual total, while profit recorded $38.8 million, taking up 8.39 per cent of the annual total.

Source: Sched Net