October 12, 2010
Yangzijiang Shipbuilding acquires equipment manufacturer
"Vertical integration" is alive and well in China. And while marine equipment manufacturers worldwide view China as a massive export market, Chinese shipbuilders may not see "partnership" with outside suppliers as a long term ideal.
China's Singapore-listed Yangzijiang Shipbuilding (Holdings) Ltd. (YZJ) says that a new subsidiary, Jiangsu Yangchen Equipment and Materials Co., Ltd. (JYCEMCO) has been incorporated in the People's Republic of China through its wholly-owned subsidiary, Jiangsu New Yangzi Shipbuilding Co. Ltd.
The core business of JYCEMCO is related to the supply of marine equipment and materials. The investment is expected to reduce the dependency of YZJ's shipbuilding activities on equipment supplies from third parties.