Dozens vie for stake in CSC

Dozens of foreign and Taiwanese companies, including Lockheed Martin and Detyens Shipyards of the US, and BAE of the UK, are looking to buy a stake in China Shipbuilding Corp (CSC) which wants to be privatised before 2009. The state-run CSC is the country’s largest shipyard and has built container ships and bulk carriers for domestic and foreign clients and has built frigates for the Taiwan navy.

Lockheed Martin, Detyens Shipyards and US banks are bidding while BAE has also shown an interest in buying a stake. Potential domestic bidders include the China Steel Corp, Evergreen Marine, Yang Ming Marine Transport and Wan Hai Lines. CSC wants to invite international tenders for the stake-release in the first quarter next year.

CSC ran into the red in the 1990s due to mismanagement and too many workers. In 2001, it laid off 2,400 employees and began its privatisation process. The government holds a 98% stake in the company and CPC wants to cut the government stake to between 34% and 49%. CSC employs 2,700 people with the main shipyard in Kaohsiung and a smaller one in Keelung.