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A spokesman for the company estimated that an annual output of 10 000 containers at a capital cost of HK$62.5 million would be sold on the international market to leasing companies who would then lease them to China.
He added that since prices were at present very competitive, profit margins would
be getting smaller and smaller.
He was confident that Javalin's sales would not be affected by a massive increase in container production in China over the next few years because the market would be able to absorb it.
B.
Guangzhou Shipyard Container Factory
Guangzhou Shipyard Container Factory, so far the most advanced project of
its kind in China, was set up under a compensation trade agreement in February, 1979.
Its three partners are China's Machine-Building Ministry, Civet Investment of Hong Kong (BRA) and CTI Container Transport, an American-based leasing company.
西域投資有限公司)
It is one of three similar projects in South China which, when all in full
operation, will supply an estimated 24 000 steel containers for local and international
trade a year.
Although it had already produced more than 300 steel TEU containers to inter- national specifications, the factory was not officially opened until January 20, 1981 when its production was increased to full capacity.
It plans to phase in production in three stages, eventually building up to an annual output of 10 000 steel TEU containers by 1984.
C.
East Asiatic Company Limited
East Asiatic Company Limited (#
) was to enter into
a joint venture with China Merchants Steam Navigation() to set up a factory in South China to manufacture containers, it was reported on January 20, 1981.
A spokesman for East Asiatic said the plant should be in limited produciton by the end of 1981.
11. CERTIFICATION OF SHIPS
A.
China/Japan
Sir Yue-kong Pao said in May 1980 that an agreement was expected to be signed between China and the Nippon Kaiji Kyokai (NKK) of Japan under which China's ships were to be certified by the Japanese classification society.
Sir Yue-kong is the chairman of the society's Hong Kong committee. As to whether the ships which he was ordering from China would be classified by NKK or not, Sir Yue-kong said the decision would be made by China.
The role of the classification societies, such as NKK, had become even more important because of the new protocols of the Inter-Government Maritime Consultative Organisation on safety and anti-pollution measures which are expected to come into force in the near future.
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