Sun, Dec 21, 2008 - Page 11 News List

CSBC plans to expand ship repair services

SMOOTH SAILING The global shipbuilding industry has been hit by the worldwide recession, but CSBC has done well because many of its clients are top ship owners

STAFF WRITER,WITH CNA

Taiwan’s leading shipbuilder, CSBC Corp Taiwan (CSBC, 台灣國際造船) unveiled a plan yesterday to expand its ship repair services to meet a possible rise in repair demand following the recent opening of direct shipping links with China.

CSBC chairman Cheng Wen-lon (鄭文隆) said revenue from ship repairs contributed 5 percent of the company’s total revenues, but the segment was expected to get a significant boost following the launch of cross-strait shipping.

In particular, the lack of any large shipbuilding or ship repair facilities along the Chinese coast between Shanghai and Guangzhou means the business could be even more lucrative, Cheng said.

Targeting this new business opportunity, the company is planning to set up floating docks to strengthen its ship repair capacity, he said.

PROFITS

This year, the company, which completed its privatization on Thursday, is expected to post profits amounting to NT$6 billion before deductions for the retirement pension reserve fund.

Its profits will be the highest recorded in the 35 years since the company was established, Cheng said.

CSBC is holding shipbuilding orders amounting to NT$120 billion, which will keep its production lines busy for the next three-and-a-half years, he said.

GLOBAL CHALLENGE

Cheng said that the privatized CSBC would work to enhance its international competitiveness, upgrade its production efficiency and strengthen cost control to further improve its performance.

CSBC vice president Wang Ko-hsuan (王克旋) said that the global shipbuilding industry had suffered because of the worldwide recession, with orders for more than 240 bulk carriers and 27 container vessels canceled around the world.

However, CSBC has not faced such problems because its main clients are top ship owners, such as Taiwan-based Yang Ming Marine Transport Corp (陽明海運) and Wan Hai Lines Ltd (萬海航運), and Japan-based Marubeni Corp, Wang said.

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