US Arms Dealers Take the Fancy to the Military Business of TWD 50 Billion

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Last updated at: (Beijing Time) Thursday, July 24, 2003

US Arms Dealers Take the Fancy to the Military Business of TWD 50 Billion

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According to the report of Taiwan's media, Taiwan's administrative and economic authorities have decided to sell part of shares of Chinese Shipbuilding Company to other firms in way of fixing the price for its assets. It is known that MPH Group (formed by several US arms companies) holds the most active attitude towards the bidding.

As known, the US arms groups take the fancy to the opportunity of warship repair business with the total value as high as 50 billion. As Taiwan will develop the warships of Generation III, some arms companies in US want to hold the shares of Chinese Shipbuilding Company by such opportunity and achieve the goal of jointly making the defensive plans for Taiwan. It has been known that US companies want to hold over 35 percent shares besides their strong wishes for success.

Taiwan companies such as EverGreen Group, Chinese Maritime Transport Ltd., Wan Hai Lines Ltd., and Jong Shyn Shipbuilding Co., Ltd all showed their desires to invest in Chinese Shipbuilding Company, but they hope that Taiwan authorities can express that whether the policy of "Taiwan's ship built by Taiwan companies" will be implemented in a more clear way.

On July 23, Taiwan economic authority held the meeting about the privatization of Chinese Shipbuilding Company and decided to accomplish that in two methods. One is to sell all assets of the company and the other is to find new investors and shareholders in the way of appraising its assets. If the first method is taken, the authority will still hold 35-47 percent shares of the company; if the first one failed, the factories in Keelung and Kaohsiung will be sold out respectively.

According to the plan of Chinese Shipbuilding Company, the factory in Keelung employing 200 workers specially manufactures the middle- and small- cargo ships for commercial use; the factory in Kaohsiung with 2,200 workers is in charge of large- cargo ships. The company turned loss into profits formally last year, and the pretax-profits of this year are expected to increase TWD 0.4 billion. It is said that the company has accepted its largest order forms this year since its founding.

By PD Online Staff Liu Wei

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