CHINA International Marine Containers (CIMC) is investing CNY3 billion (US$480.7 million) in building a new 450,000-TEU container manufacturing plant in Yinzhou, Ningbo, marking its second expansion project in China this year.
In March, CIMC, the world's biggest box maker, announced it would invest CNY7 billion in developing a container manufacturing plant with an annual production capacity of 750,000 TEU in Dongguan, adjacent to Guangzhou.
Despite slowing container sales, the world's largest box manufacturer is betting on a long-term trend of containerisation in global trade and a gradual economic recovery.
"Leveraging on the gradual recovery of the global economy, as well as the steady increase in global containerisation, it is expected that the long-term growing trend of demand for containers will continue in the future," the firm said in its Shenzhen and Hong Kong stock exchange filing.
"Upon completion of the Yinzhou project, it will benefit the group in further fortifying and maintaining its leading position in the container industry," said the filing.
CIMC sealed the deal with local authorities to put fixed-asset investment of CNY1.5 billion into the 470,000-square metre plant in the Yinzhou Economic Development Zone, near one of the main hubs in eastern China.
The complex will have an initial production capacity of 200,000 TEU per year in 2015, before expanding to 450,000 TEU per year in 2018.
CIMC, whose cash reserves amounted to CNY4.5 billion at the end of March, will fund the project from its own capital.