SembCorp Marine to buy into Cosco Shipyard

The Singapore ship repair and shipbuilding company, SembCorp Marine, is paying $28.5 million for a 30% stake in Cosco Shipyard Group (CSG), China’s largest ship repair company with yards in Dalian, Nandong and Guangzhou. The investment will be funded from SembCorp Marine’s own internal resources.

SembCorp is also transferring its 20% equity stake in Cosco Dalian Shipyard to the enlarged CSG which brings SembCorp?s total investment in Cosco Shipyard Group $40.7 million. This investment will enable them to move their management systems to help CSG reorganise their facilities and help them capture a greater part of the world market.

This is the first part of SembCorp?s long-term plan of greater involvement in Chinese yards including further investment so they can enhance their capabilities in the offshore oil and gas industries. Cosco Corp Singapore, a unit of Cosco, said in a separate statement that it would buy a 51% stake in Cosco Shipyard from China Ocean Shipping, Guangzhou Ocean Shipping, Tianjin Ocean Shipping and Shanghai Ocean Shipping.