'K' Line invests in mainland Quanzhou ship repair yard

K LINE says it has reached an agreement with the holding company of Titan Quanzhou Shipyard Ltd (TQSL), a shipyard under construction in a suburb of Quanzhou, a city in Fujian province.

Under the agreement, K Line will become a Primary Strategic Partner in this ship repair business by purchasing convertible securities equal to five per cent of the outstanding number of shares.

TQSL occupies a total area of 110 hectares with a 3,600 metre coastline. Upon full completion in 2010, it will be the largest modern-designed repair dock in China with a capacity of 250 vessels per year, equipped with four ultra-large dry docks, two slipways, 10 repair berths, painting workshop and mechanical-electrical workshop, a K Line statement said.

The deal has enabled K Line to secure certain repair slots at TQSL for its growing fleet, and especially for large-sized vessels, as a strategic alliance partner. TQSL will accommodate all types of vessels, and aims to keep an extremely high utilisation ratio, the release added.