COSCO streamlining investment in container company
COSCO Pacific Ltd., a publicly traded arm of China Ocean Shipping Co. involved in container leasing, terminal operations and logistics, said it is restructuring its investment in container manufacturing.
COSCO Pacific and its parent own shares in China International Marine Containers (CIMC) Group, the biggest maker of containers in the world, and they also owned a 20 percent interest in CIMC’s Shanghai factory. CIMC is closing its Shanghai factory “due to pressure from the PRC government authorities and local residents on environmental issues, Shanghai CIMC will cease the production of its existing manufacturing plant and move to a new manufacturing plant.”
With the plant closing, COSCO Pacific said it wanted to streamline its investment in CIMC, so it will sell its fifth interest in the Shanghai factory for $6.25 million, while continuing to own 16.23 percent stake in CIMC. COSCO Pacific’s parent also owns a little less than one percent of the container maker.