Chinese shipbuilding group China Ocean Industry has announced that it has entered into an agreement to sell its entire 20% interest in Zhejiang Ocean, a financial leasing company, to China Medical Services for a price of RMB170m ($25.3m).
China Ocean Industry said the disposal is a good opportunity for the company to restructure its core business and the entire net proceeds from the sale will be used to repay outstanding debt.
“The company will gradually divest of its non-core businesses while exploiting and strengthening its wharf construction and related logistics business, at the same time, maintaining focus on its manufacturing and service business, in order to generate more cashflow for the company,” China Ocean Industry said in a release.
Last year, the company entered into a joint venture agreement with Yangzijiang Shipbuilding in order revive subsidiary yard Jiangzhou Union Shipbuilding.
