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Airline parent grows shipping business

HNA Group, parent of Hainan Airlines, has invested 3.2 billion yuan (US$469 million) in a shipbuilder in Zhejiang Province to expand its business in the shipping sector.

Grand China Logistics Group, a subsidiary of HNA Group, signed an agreement with Zhoushan Jinhaiwan Shipyard Co yesterday for a 50 percent stake in the company and ordered 30 ships.

"The cooperation can help Jinhaiwan remain a fast developer when the industry is gloomy, and HNA Group can also expand its business chains in a bid to create a comprehensive group," HNA Group said.

Huang Shannian, chairman of Jinhaiwan's parent, Zhouji Group, said the company was one of the top 20 shipbuilders in the world.

"In 2010, our output value will reach 20 billion yuan and profit will grow to 1.7 billion yuan," Huang said.

HNA Group yesterday also signed an agreement with Zhejiang Energy Group to form a joint venture to transport coal and ore.

The agreements are part of cooperation between Hainan Province and Zhejiang Province. The two provinces will jointly develop shipbuilding, aviation and logistics industries.

HNA Group is aiming to create a comprehensive group to deal in three key businesses - airlines, logistics and financial services. It now owns 12 airlines, 11 airports, 51 hotels, 5 shipping companies, 13 finance firms and two business groups.

Among HNA Group's 30 billion yuan revenue last year, its logistics business accounted for 10 percent to 15 percent, but that will grow to 15 percent to 20 percent this year, its Chairman Chen Feng said earlier.


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