China Ocean Industry disposes of interest in leasing JV to repay debt

China Ocean Industry disposes of interest in leasing JV to repay debt

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.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.

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