COSCO Shipping International (Singapore) Co. sells its naval engineering activities to the parent company COSCO Shipping

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May 5, 2017 – COSCO Shipping International (Singapore) Co., a Singapore-based shipbuilding and repair company that is controlled by Chinese shipowner China COSCO Shipping, which owns 53.35% of Singapore’s share capital of Singapore, today A plan for the sale of its entire naval engineering division to COSCO Shipping Heavy Industry, a wholly owned subsidiary of the same COSCO Shipping group.
The plan provides for the transfer to COSCO Shipping Heavy Industry of the entire shareholding of COSCO Shipping International (Singapore) Co. in the COSCO Shipyard Group, which is equal to 51.0% of the capital. COSCO Shipyard Group, which is part of the COSCO Shipping group, has six naval yards located in Nantong, Qidong, Dalian, Zhoushan, Guangdong and Shanghai. The plan also includes the sale of the entire share (50.0%) held by COSCO Shipping International (Singapore) Co. in COSCO (Nantong) Shipyard, a company which is in turn 50% owned by COSCO Shipyard Group itself Which owns a 334,000 square foot shipyard in Nantong and operates naval repair and conversion activities and engineering services for the offshore industry. The plan also includes COSCO (Dalian) Shipyard, a wholly owned subsidiary of COSCO Shipyard Group, which owns 39.1% of the share capital of COSCO Shipping International (Singapore) Co. and manages Dalian is a shipbuilding, repair and ship conversion yard and offers engineering services to the offshore industry.
The three quotas will be sold for a total of 1.46 billion yuan (US $ 212 million), including 1.19 billion yuan for COSCO Shipyard, 279 million for Nantong COSCO Shipyard and one yuan for Dalian COSCO Shipyard
“China COSCO Shipping – said the vice chairman and chairman of COSCO Shipping International (Singapore) Co., Gu Jing Song, explaining the reasons for the decision to sell naval mechanics – is restructuring its naval shipbuilding business Centralizing their operations and management. The divestment will allow the company to quit a loss-making segment and create resources to invest in potential new business by substantially reducing the company’s debt and improving its financial position. ”
Meanwhile, COSCO Shipping International (Singapore) Co. filed the first quarter of 2017 with revenues of $ 401.8 million in Singapore ($ 287 million), down by -44% compared to $ 722.3 million Singapore dollars in the first three months of last year. Net profit was negative for Singapore’s -143.8 million dollars compared with a net loss of -11.7 million dollars in Singapore in the first quarter of 2016.