January 12, 2006
SembCorp Marine puts more money into Chinese yard venture
Singapore's SembCorp Marine Ltd has agreed to an increase in the registered capital of the Cosco Shipyard Group in China, in which it holds a 30 percent equity stake.
SembCorp Marine will inject its share of the increased capital in three installments over two years. Based on the prevailing exchange rate, SembCorp Marine will be contributing Singapore $45.4 million (US $27.8 million).
The Cosco Shipyard Group is a leading ship repair and conversion group in China. It owns a total of five shipyards strategically located in the key coastal cities stretching from Dalian in the North, Nantong, Shanghai and Zhoushan in the center and Guangzhou in the south. These shipyards provide shipowners with an effective network of marine engineering services across the entire length of China's coast.
Sembcorp Marine says the injection of capital into the Cosco Shipyard Group is in line with its strategy to grow its China Hub and to participate in the growing ship repair and ship conversion market in China.