Forecasts Profit (17 Sep 2002)
Debt-ridden China Shipbuilding Corp is predicting it will report
NT$200 million in pretax profit this year and hopes it could return
to profitability within two years by building and repairing naval
China Shipbuilding, the country's largest builder
of naval and commercial vessels, reported NT$3 billion in net
losses last year.
It is scheduled to be privatized by the end of next
year.To help revive the company, the shipyard secured orders to
build nine vessels for both domestic and foreign clients. These
orders, valued at US$250 million, will be filled by the third
quarter of 2004.
The company is also seeking support from the Ministry
of National Defense for the construction and maintenance of navy
vessels, despite serious doubts about its ability to construct
the sophisticated ships.
The US government agreed in April to sell Taiwan
four Kidd-class destroyers, eight diesel-powered submarines and
reconnaissance aircraft in order to maintain a military balance
across the Taiwan Strait.
"As long as the US can offer the shipyard
certain technological assistance and design blueprints, it believes
it can build the subs.
The company has contacted potential foreign contractors
for the project -- such as German shipyard Howaldswerke-Deutsche
Werft and General Dynamics Corp of the US, hoping to build the
first 2 submarines overseas and the remaining six in Taiwan.