Shanghai: Yangzijiang Shipbuilding continues to dispose of non-core assets. The giant Singapore-listed yard has disposed of its 50% equity interest in the registered capital of ship recycler, Jiangsu Huayuan Metal Processing (JHMPCO).
“In view of the weakening demand and increased costs in relation to higher requirement on environmental regulations, it is in the best interest of the company to dispose the 50% equity interest in JHMPCO at a consideration of RMB140m,” the yard said in a release.
Yangzijiang will still hold a 50% stake in the company, but will change its focus to include steel cutting and processing, scrap steel crushing, shearing, and general cargo warehousing, wholesale of scrap steel, non-ferrous metals and ferrous metals, and coal washing, sale, handling, import and export.
“The disposal is in tandem with the [Yangzijiang’s] strategy to re-position its businesses activities,” the yard said. [14/08/14]