CSBC Corp, Taiwan (台灣國際造船) yesterday said it was optimistic about its repair business for this year after the shipbuilder secured NT$380 million (US$12.34) in government contracts to repair a military ship and a research vessel.
CSBC has signed an open contract to repair the Republic of China Navy’s Panshi, a fast combat support ship, with the deal covering all maintenance work for five years, CSBC president Tseng Kuo-cheng (曾國正) told the Taipei Times by telephone.
An open contract is an agreement in which terms and clauses can be changed or modified without mutual consent among the signatories.
“Usually there is no settled price in an open contract, but the Ministry of National Defense has made it clear that the repair budget for the Panshi would stand at NT$280 million,” Tseng said.
CSBC, which began work on the 20,000-tonne vessel in 2012, delivered the ship in 2015.
The company rarely signs open contracts, but won this one after the ministry said it was better that the ship’s builder do the repairs, Tseng said.
It was unclear what maintenance the ship needs this year, but CSBC expects to book steady revenue over the next five years, he said, adding that work would be done at its Kaohsiung facilities.
CSBC, the nation’s only listed shipbuilder, this month also signed a contract with the Council of Agriculture’s Fisheries Research Institute to repair the agency’s first fisheries research vessel, Tseng said.
“We did not see many rivals for the tender, as it is not easy to repair a 25-year-old vessel,” he said.
CSBC would need to complete the work at its Keelung facilities by the end of this year, he said.
“Overall, we have had a good beginning to the year and hope to win more repair contracts,” Tseng said.
Although maintenance only contributes 3 percent to 5 percent to CSBC’s overall revenue, the gross margin from such work is quite good, he said.
Meanwhile, CSBC said Orsted A/S had not notified it to suspend a contract to develop pin piles for offshore wind projects.
The Danish firm this month announced it was suspending its offshore wind projects in Taiwan after failing to receive an establishment permit for projects off the Changhua County coast and was unable to secure a power purchase agreement at last year’s feed-in tariff rate.
Separately, CSBC said that it would raise NT$2.25 billion in fresh funds to fuel development.
The company plans to issue 100 million new shares, with most of them to be purchased by a state-run institution, which it declined to specify.
The company’s state-owned stakeholders include the Ministry of Economic Affairs and China Steel Corp (中鋼).
They hold a combined 41.5 percent stake in CSBC, which would still be the largest stake after CSBC’s scheme is completed, the company said.
Softbank Group Corp plans to keep a stake in the chip designer Arm Ltd, even if it sells a partial interest to Nvidia Corp, the Nikkei reported. The companies are negotiating terms, the newspaper reported, citing sources. Softbank might take a stake in Nvidia after it buys Arm, the report said. Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The two parties aim to reach a deal in the next few weeks, the sources said, asking not to be identified because the information is private. Nvidia is the
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
Gold surged to a fresh record on Friday, fueled by US dollar weakness and low interest rates, while silver headed for its best month since 1979. Spot bullion is up more than 10 percent this month, as US real yields lingered near record lows. While the ferocity of rallies in gold and silver cooled in the middle of the week, most market watchers predict there might be more gains ahead. Both metals have added about 30 percent this year, with gold and silver exchange-traded funds boosting holdings to a record, as concern about the fallout from the COVID-19 pandemic fuels demand for
MOVING FROM CHINA? The article did not name the company, but Foxconn, Wistron and Pegatron were among firms chosen for a production-linked incentive plan in India An Apple Inc vendor is looking at shifting six production lines to India from China, which could result in US$5 billion of iPhone exports from the South Asian nation, the Times of India reported, citing people familiar with the matter who it did not identify. The establishment of the facility would create about 55,000 jobs over about a year, the newspaper reported, not naming the Apple vendor. It would also cater to the domestic market and expand operations to include tablets and laptops, the newspaper reported. Samsung Electronics Co and Apple’s assembly partners are among 22 companies that have pledged 110 billion