Singapore listed Yangzijiang is taking an 80% stake in Jiangsu Huayuan Metal Processing whose subsidiaries include the Jingjiang City Dunfeng Ship Dismantle Co., which is one of the few qualified and environmentally friendly ship scrapping companies in China.
Previously, Yangzijiang had an indirect 20% stake in the scrapping corporation which now becomes wholly owned subsidiaries of the
The diversification into shipbreaking and scrap metal trading provides a steel hedging strategy to complement Yangzijiang shipbuilding business and contribute to a sustainable growth in earnings.
The move into scrapping follows Yangzijiang's recent diversification into the rig and offshore vessel building and repair business.
. 24 December 2011 News, China