Shipbuilder seeks listing within 2004

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Last updated at: (Beijing Time) Friday, January 16, 2004

Shipbuilder seeks listing within 2004

The China Shipbuilding Industry Corporation (CSIC) will spare no efforts to make its subsidiary -- Fengfan Stock Co Ltd go public this year, a senior official from the company said.

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The China Shipbuilding Industry Corporation (CSIC) will spare no efforts to make its subsidiary -- Fengfan Stock Co Ltd go public this year, a senior official from the company said.

"We've got the nod from the China Securities Regulatory Commission and are on the waiting list now," said Xin Guoliang, deputy-director of CSIC's Administration Department.

"We hope it can be listed within this year."

Founded in 2000, Fengfan Stock Co Ltd was born with the re-organization of CSIC's four subsidiaries with a registered capital of 138 million yuan (US$16.6 million).

It mainly deals in the production of storage batteries, battery accessories, plastic products and fibre products, which are widely used in the automobile, motorcycle, power, electronics, transportation and communications industries.

Its battery business has so far accounted for more than 20 per cent of the nation's total.

"Corporate restructuring will continue to be carried out this year,'' emphasized Li Changyin, general manager of CSIC.

According to him, the establishment of Wuhan Anchor Welding Shareholding Company, one of its subsidiaries, has already been submitted for approval.

The company adjustment will also be further conducted in its other subsidiaries to allow them to get ready for public listings, including Kunming Shipbuilding Logistics and Information Co Ltd and Chongqiang Gearbox Co Ltd, he said.

"Taking the advantage of the thriving international market, we will move to expand overseas,'' Li said yesterday at the company's working conference.

According to him, the company will further boost its co-operation with foreign companies such as US KBR Corp, US Valence Corp and Sweden's ABB Group.

CSIC earned a total revenue of 27 billion yuan (US$3.2 billion) last year, up 19 per cent compared to 2002.

Established in 1999, CSIC is one of the largest group in China in the field of design, manufacture, and trade of military and civil ships, marine engineering and marine equipment.

Li attributed the strong growth to the revival of the global economy as well as sustainable economic development in Asia.

In another development, the quick development of other industries such as power, oil, manufacturing, high-tech, construction have also laid a sound environment for the development of its non-ship businesses, he said.

Latest figures from the company indicated that the company has clinched shipbuilding orders of more than 4.2 million tons last year, up 244 per cent from the previous year.

About 80 per cent of orders were from the overseas market, it said.

"We are also seeing a growing demand in the domestic market this year due to many factors such as the enhanced import of oil and increase in foreign trade," Li said.

To meet the demand of increasing domestic demand for shipbuilding, the company unveiled a new company today to concentrate on ship design and research.

"It will focus on the design, development and research on civil ships as well as providing oceanic technology consultation and transfer," said Zhao Zhanjun, managing director of China Ship Design and Research Centre Co Ltd.

The company is funded by CSIC and its eight subsidiaries with a registration capital of 68 million yuan (US$8.2 million).

Based in Beijing, the company will gradually expand its branches in other cities including Dalian, Huludao, Qingdao, Wuhan and Shanghai.

According to Zhao, the company will co-operate with other design centres both at home and abroad.

"At the very beginning, we may co-operate with them on project basis," he said.

"We don't rule out the possibility to set up joint venture with those foreign companies in the future," he said.

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