CHINA International Marine Containers (Group) Ltd. (CIMC) has confirmed in a recent announcement that the nation's dry container manufacturing industry has come into slack season this year earlier than ever and that production of the whole industry has stopped, or nearly so.
But CIMC didn't give any further details about how the group was affected by the slack season, said Xinhua.
CIMC said its dry box production used to be a non-seasonal business. Conventionally, the period from the fourth quarter to the second quarter next year is the slack season when workers take vacations in larger numbers. But this year as the world financial crisis has caused a sharp fall in China's exports, the slack season has come earlier than ever.
From January to September, CIMC's dry container sector accounted for 46 per cent of the group's operating revenue and 32 per cent in the group's net profit. The group said the other businesses than dry box are remaining stable in the fourth quarter.
In 2007, the group's dry box business took up 51 per cent in the total operating revenue and 22 per cent in net profit. During the fourth quarter last year, its dry box business recorded a revenue volume of CNY5.7 billion (US$830 million), taking up 11.64 per cent of the group's annual total, while profit recorded CNY266 million (US$38.8 million), taking up 8.39 per cent of the annual total.
CIMC said they have been actively adjusting their product mix during the recent years to avoid heavy reliance on the dry box sector, such as by introducing new businesses like transportation vehicles, energy and chemical devices and equipment and offshore drilling platform.
An earlier report from Dow Jones divulged that CIMC's dry box production has been in a stop for two months and 22,000 of its workers, which was about 38 per cent, were on vacation.
An unidentified source in management told Xinhua that the group has indeed ceased part of its production business. He also confirmed that a larger number of workers are in vacation than in the past due to gloomy economic situation, but said the group hasn't collected detailed statistics on the issue.
But CIMC didn't give any further details about how the group was affected by the slack season, said Xinhua.
CIMC said its dry box production used to be a non-seasonal business. Conventionally, the period from the fourth quarter to the second quarter next year is the slack season when workers take vacations in larger numbers. But this year as the world financial crisis has caused a sharp fall in China's exports, the slack season has come earlier than ever.
From January to September, CIMC's dry container sector accounted for 46 per cent of the group's operating revenue and 32 per cent in the group's net profit. The group said the other businesses than dry box are remaining stable in the fourth quarter.
In 2007, the group's dry box business took up 51 per cent in the total operating revenue and 22 per cent in net profit. During the fourth quarter last year, its dry box business recorded a revenue volume of CNY5.7 billion (US$830 million), taking up 11.64 per cent of the group's annual total, while profit recorded CNY266 million (US$38.8 million), taking up 8.39 per cent of the annual total.
CIMC said they have been actively adjusting their product mix during the recent years to avoid heavy reliance on the dry box sector, such as by introducing new businesses like transportation vehicles, energy and chemical devices and equipment and offshore drilling platform.
An earlier report from Dow Jones divulged that CIMC's dry box production has been in a stop for two months and 22,000 of its workers, which was about 38 per cent, were on vacation.
An unidentified source in management told Xinhua that the group has indeed ceased part of its production business. He also confirmed that a larger number of workers are in vacation than in the past due to gloomy economic situation, but said the group hasn't collected detailed statistics on the issue.