Chinese car parts manufacturer Xingmin Intelligent Transportation Systems (Xingmin ITS) is expanding into the shipbuilding business by acquiring a 30% stake in Zhejiang East Coast Shipbuilding.
The Shenzhen-listed company, which mainly produces steel wheels for cars and trucks, is paying RMB360m ($50.5m) for its move on the subsidiary of Yangfan Group, which also controls Zhoushan Shipyard, Zhoushan Dashenzhou Shipbuilding and Zhejiang Yangfan General-use Machinery Manufacturing.
According to Yangfan, East Coast Shipbuilding covers an area of 790,000 sq m equipped to build ships under 100,000 dwt, including car carriers, containerships, bulk carriers, tankers, and MPPs with an annual capacity of more than 1m dwt.
The yard has seen better days and has failed to deliver profits for the past two years. However, Xingmin ITS has struck a separate deal with compatriot builder Wuhu Shipyard to bring in orders worth nearly $425m in 2025 for eight 89,000 dwt bulkers and one 7,000 ceu car carrier. Under the deal, Wuhu will outsource 37 orders to East Coast Shipbuilding over the next five years, including also 10 MPPs and more than 15 chemical and product tankers.
By Adis Ajdin.
Source: Splash 247.https://splash247.com/chinese-car-parts-maker-moves-into-shipbuilding/. 27 October 2024.
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