Strategic equity investment of RMB￥420million on COSCO Shipping Holding by ZPMC
Shanghai Zhenhua Heavy Industries Co., Ltd. (ZPMC) signed the share subscription agreement with COSCO Shipping Holding Co., Ltd. for private A share of 111,111,111 at the price of RMB￥3.78 for each share with the own capital of RMB￥419,999,999.58, ZPMC said in its press release.
China Ocean Shipping (Group) Company (COSCO), the parent company of COSCO Shipping Holding Co., Ltd., is one of important customers of ZPMC for the business complementarity. The investment on COSCO Shipping Holding will improve the further deepening cooperation between ZPMC and COSCO in the port machinery, strengthen and expand the overall cooperation in the maritime engineering and services and logistics of both parties as well.
With the strategic investment, ZPMC develops the community of common future with the capital. It will stabilize and improve ZPMC’s cooperation with various terminal companies with the assistance of the industrial influence of COSCO on terminal companies in the globe. It is beneficial for the future strategic layout for long-term benefits.
Shanghai Zhenhua Heavy Industries Co., Ltd. (ZPMC) is a famous heavy-duty equipment manufacturer, and a state owned company listed on A and B shares on Shanghai Stock Exchange. The major shareholder is China Communication Construction Co., Ltd. (CCCC) which is one of top 500 companies in the world. The former company was Gongmao Shipyard founded in 1885 and it was renamed Shanghai Zhenhua Heavy Industries Co., Ltd. in 2009. ZPMC headquarters is located in Shanghai. ZPMC also has 10 production bases located in Shanghai, Nantong with total area of 6,670,000 square meters and 10 kilometers coastline, especially the Changxing Base, which has a 5 kilometers deep water coastline, and includes a heavy-duty dock of 3.7 kilometers. ZPMC is the largest port machinery heavy-duty equipment manufacturer in the world and owns a fleet of 25 transportation ships which are from 60,000 DWT to 100,000 DWT can deliver products to all over the world.