CSCL sign multi-million dollar box deal with parent company
HONG KONG-LISTED China Shipping Container Lines (CSCL) has agreed to buy containers from its parent company, China Shipping (Group) Co., to cope with the expected growth in demand over the next few years.
A company statement said the deal, worth a total of US307.24 million, will cover the three financial years ending December 31, 2008.
The company said that it had been buying containers from Dong Fang International Container (Lianyunggang) Co. Ltd - a wholly-owned subsidiary of China Shipping (Group) Ltd.
The company plans to use internal resources and/or borrowings to pay for the purchase of the containers under the deal.
It also explained that it had entered into the agreement because the terms of the sale provide by the parent company were generally more favourable to the group than those provided by independent third party suppliers.
Meanwhile, CSCL announced that Jia Hongxiang has been appointed as an additional vice chairman of the company as of January 26, 2006. Mr Jia's post as general manager has been be taken over by Huang Xiaowenl, while Xu Weiyong is the company's new deputy general manager.