The parent of new Korean container carrier SM Line will bolster the liner’s financials by folding two other companies into the brand. Samra Midas Group is to merge SM Line with two other companies it owns, Korea Shipping Corporation and Woobang Engineering & Construction.
“SM Line will continue investments to expand its fleet of container ships and service routes. Through the merger, which will expand SM Line’s capital, improve its cash flow, and enhance its credit standing, the company can strengthen its competitiveness and become a force in the industry,” SM Group said in a statement.
Samra Midas, best known as a construction firm, has a diverse shipping portfolio having taken over dry bulk concern Korea Line Corporation four years ago. Korea Line Corporation then took over defunct Samsun Logix via a debt for equity swap and subsequently rebranded it as Korea Shipping Corporation.
Samra Midas launched containerline SM Line at the start of this year, taking on some of the rump of defunct Hanjin Shipping. Initially SM Line has targeted the intra-Asia and transpacific tradelanes, building up a fleet of more than 30 ships in a remarkably quick period.