CSSC Chengxi Sales subsidiary repair plant
2013-09-04 09:00
China Shipbuilding announced on the 2nd that its subsidiary, CSSC Chengxi Yuanhang Shipbuilding (Guangzhou) Co., Ltd., will transfer assets to Guangzhou Wenchong Shipyard Co., Ltd. in a related party transaction.
The announcement stated that due to the continued downturn in the global shipping market and severe overcapacity in the ship repair industry, CSSC Chengxi (Guangzhou) has high operating costs in its two locations. To optimize resource allocation and improve operational management, the company plans to transfer the "Wenchong Workshop" related assets to Wenchuan Company.
According to the asset appraisal report issued by Shanghai Lixin Asset Appraisal Co., Ltd., the appraised value of the assets related to the "Wenchong Workshop" is RMB 261,318,900 (excluding tax).
In addition, CSSC Chengxi Yuanhang Shipbuilding (Guangzhou) Co., Ltd. has two shipyards: the "Longxue Headquarters" and the "Wenchong Workshop." The "Wenchong Workshop," located in the Guangzhou Huangpu District within the Wenchuan Company, covers an area of 180,774 square meters. It has a 150,000-ton dry dock, an 876-meter wharf, a 11,207-square-meter prefabrication or hatch cover storage area, and a water depth of 6.5 meters in front of the wharf. It has one production department, three workshops, and an annual capacity to repair 110 vessels under 100,000 tons. The repaired vessels are mainly conventional vessels, with the repair of bulk carriers (ship type shipyard transactions) being dominant.
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