Singamas sells four container manufacturing units to Cosco

Singamas sells four container manufacturing units to Cosco

SS Teo’s Singamas Container Holdings has entered into an agreement to sell four of its container manufacturing units in China to Cosco Shipping Financial Holdings for a total price of RMB3.8bn ($562m), following on from the announcement of a potential deal in March.

Under the agreement, Singamas will sell the four subsidiaries Qidong Singamas, Qingdao Pacific, Ningbo Pacific and Singamas Container (Shanghai) to Cosco. Qingdao Pacific also has a fully owned subsidiary Qidong Pacific.

Singamas believes that the disposal will be an important step towards the transformation and upgrading of the group’s traditional business, which includes shifting the group’s business focus to logistics services and the manufacturing, R&D and sale of specialised containers.

Singamas will use the proceeds from the sale for debt repayment, distribution of special dividend and general working capital.

In January, Maersk’s container manufacturing unit Maersk Container Industry also decided to ditch manufacturing dry containers and will fully focus on growing its cold chain business.

Cosco is currently engaged in the container manufacturing business through its subsidiary Shanghai Universal Logistics Equipment, which has an annual manufacturing capacity of 500,000 teu. It also holds around 14.5% equity interest in CIMC, the world’s largest container manufacturer with over 40% of global market share.

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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