Lonyer Fuel dissolves bunker trading subsidiary

Lonyer Fuel dissolves bunker trading subsidiary

Shanghai: Shanghai-based ship fuel trader Lonyer Fuel, has announced that the board has approved to liquidate subsidiary Lonyer GreenCooper Trading Company, with the development of the subsidiary not meeting the company’s expectations.

Lonyer GreenCooper Trading Company was jointly established by Lonyer Fuel and GreenCooper (Shanghai) Investment Management Company in Shanghai Free Trade Zone in September 2013. Lonyer and GreenCooper holds 60% and 40% equity shares in the joint venture respectively.

Lonyer Fuel said the subsidiary had not been able to develop a stable group of clients and suppliers since establishment, and it also had found illegal embezzlement activities by the general manager of the subsidiary.

Lonyer Fuel reported a net loss of RMB50.67m ($8.15m) for the first half of 2015, sharply down from the RMB4.9m ($789k) net profit in the same period of 2014.

The company attributed the loss to reduced sales volumes and lower fuel prices amid the depression in the international oil market.

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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