Xingmin Intelligent Transportation Systems (Xingmin ITS), a manufacturer of automotive components listed on the Shenzhen Stock Exchange, has confirmed its plans to expand into shipbuilding through the purchase of shares in an existing Chinese shipyard.
Xingmin ITS announced in a stock exchange filing that it will acquire a 30 per cent interest in Zhejiang East Coast Shipbuilding, a wholly owned subsidiary of Chinese conglomerate the Yangfan Group. The acquisition will be via an all-cash deal with an estimated value of CNY360 million (US$51 million).
Zhejiang East Coast Shipbuilding is presently engaged in the manufacture of commercial vessels of 100,000 DWT and below. These include pure car and truck carriers, container vessels, bulk carriers, Handysize multi-purpose vessels, chemical tankers, and ocean-going fishing vessels.
Yangfan is also the parent company of Zhoushan Dashenzhou Shipbuilding. The two shipbuilding arms of the Yangfan Group have a total annual production capacity of approximately 1.5 million DWT.