China Ocean Industry Group has entered into a cooperation deal with the Ruichang Government and a Singapore-listed shipbuilder for the management of Jiangxi Jiangzhou Union Shipbuilding.
Under the cooperation agreement, signed between the parties on March 8, the Singapore-listed shipbuilder will be responsible for managing the shipyard, which is a wholly-owned subsidiary of Jiangzhou Shipbuilding.
The shipbuilder, understood to be Yangzijiang Shipbuilding, would also make use of technologies, resources, funding and market to stabilise the backbone shipbuilding team of Jiangzhou Shipbuilding to ensure normal employment of workers and raising the income of workers, and restore the normal production and operation level of Jiangzhou Shipbuilding aiming for turnaround to profit.
The agreement would see Ruichang Government designate the limestone mining area in Huangjinxiang, Ruichang City, with limestone deposit of around 500 million tonnes, and the parties shall set up a joint-venture company to participate in the open tender for the limestone mine.
Additionally, the government would transform the outfitting pier of the company into a sandstone pier, which will be used for transportation of sandstone manufactured and produced by the JV.
Jiangzhou Shipbuilding has been undergoing certain difficulties in business in recent years and has been seeking for co-operation opportunities to integrate the Jiangzhou Shipbuilding business. The cooperation and the transactions devised under the agreement would offer an opportunity for Jiangzhou Shipbuilding to revitalize its business.