China: KHI to Take Stake in Dalian COSCO Shipyard
Kawasaki Heavy Industries, Ltd has decided to acquire a stake in Dalian COSCO Shipbuilding Industry Co., Ltd. (DACOS), a shipbuilding company based in Dalian, China.
DACOS is a joint venture company established in the Lushun Economic Development Zone in Dalian. It was co-founded in 2007 by COSCO Shipbuilding Industry Company (COSIC)—a wholly-owned subsidiary of the COSCO Group, which is one of the largest shipping companies worldwide—and Nantong COSCO KHI Ship Engineering Co., Ltd. (NACKS), a 50-50 joint venture operated by Kawasaki and COSIC. DACOS is 70% owned by COSIC and 30% by NACKS. At its 1.8-million-m2 shipyard complete with two building docks, DACOS has so far built two 205,000-ton class bulk carriers, earning high marks from the shipowners both in terms of timely delivery and quality.
Through the transaction, Kawasaki will acquire a 34% stake in DACOS from COSIC, which has been searching for a new partner with more advanced shipbuilding technology to make DACOS more competitive and further expand its operations. After the share transfer, DACOS will be 36% owned by COSIC, 34% by Kawasaki and 30% by NACKS.
As a direct investor in DACOS, Kawasaki will aim to build a stronger cooperative relationship based on the successes of NACKS, its first joint venture with COSIC. Kawasaki will also work toward enhancing DACOS’s capacity to develop, design and build ships, while improving its production and management system, to lay a firm foundation for DACOS’s long-term growth.
With a view to expanding operations in China and boosting profitability, Kawasaki will further deepen cooperation between its bases at home and in China and actively pursue shipbuilding.
Shipbuilding Tribune Staff, May 8, 2012; Image: cosco