Friday, December 05, 2008

CIMC grants 22,000 leave on production halt

China International Marine Containers (Group) Co suspended its trading on the Shenzhen Stock Exchange yesterday, admitting it had stopped the production of dry vans, used for shipping general cargo, for two months.

"About 22,000 workers employed in the production sector have been given paid leave, and most of them have been receiving training for other posts. The company did not lay off any workers in the period," said a senior CIMC executive, who declined to be named.

He said the production halt was part of the company's strategic adjustment.

"CIMC stopped the dry van production, as the global financial turmoil has hit the demand for container purchases. But the company has sufficient capital flow to withstand the turmoil," he said.

He did not rule out the possibility that the company would make an overseas investment through its strategic adjustment. He said the company would issue a public notice via the exchange once it was ready to resume stock trading.

CIMC also produces special containers, container hoisting facilities, road transport and airport equipment.

The company said the dry van sector accounted for nearly half of its business.

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