On July 15, Weichai Heavy Machinery issued an “Announcement on the Planning of Equity Acquisition and Related Party Transactions.”
The announcement disclosed that Weichai Heavy Machinery is planning to use its own funds to acquire 100% of the equity of Changzhou FRP Shipyard, a wholly-owned subsidiary of the company’s controlling shareholder, Weichai Holding Group. After the transaction is completed, Changzhou FRP Shipyard will become a wholly-owned subsidiary of Weichai Heavy Machinery.
Weichai Heavy Machinery said that through the professional integration of upstream and downstream assets of the shipbuilding sector, it will help improve the industry concentration and resource allocation efficiency, improve the industrial layout, give full play to business synergy, open up new business growth points, improve the company’s profitability and sustainable development capabilities, and enhance the market competitiveness and industry status of the listed company. Therefore, this acquisition is in the interests of the listed company and all shareholders. The transaction is still in the planning stage, and the investment agreement and letter of intent have not been formally signed. The specific plan still requires further careful demonstration and communication and negotiation between the company and Weichai Group.
The announcement shows that Changzhou FRP Shipyard’s main business is the research and development and production of various types of boats under 30 meters, including composite materials, steel, aluminum, etc., and its main products are official boats, work boats and leisure boats.
In 2022, Changzhou FRP Shipyard established a wholly-owned subsidiary, Boxing Company, and invested in the construction of Weichai (Qingdao) Marine Equipment Manufacturing Center project to expand the business of boats over 30 meters and under 80 meters. Changzhou FRP Shipyard has long been committed to the research, development, design and construction of small and medium-sized boats. It is a leading enterprise in the field of high-performance boats made of steel, aluminum and various composite materials in China.