China's CIMC plans $59 mln truck venture

China International Marine Containers Co., Ltd. (CIMC), the world's largest shipping container maker, said recently that one of its subsidiaries had agreed to set up a truck manufacturing venture with two domestic partners capitalised at 400 million yuan ($58.5 million).

CIMC will hold a 45 percent stake in the venture, mostly making medium and heavy trucks, it said in a statement.

Initial investment in the venture, expected to start production in 2011, will be 2 billion yuan, it said.

CIMC also said it expects a 40 percent to 60 percent fall in its net profit in 2008 as the global financial crisis takes a toll on ocean shipping demand.

Unaudited net profit in 2008 was about 1.5 billion yuan compared with 3.17 billion yuan in 2007.