Yang Ming Marine Transport Corp (陽明海運) is to use NT$16 billion (US$570.4 million) of its NT$29 billion in newly raised capital to lower its debt-to-asset ratio to less than 60 percent, it said yesterday.
The container shipping company’s assets and liabilities were NT$208.85 billion and NT$146.4 billion respectively as of the end of March, indicating a debt-to-asset ratio of 70 percent, company data showed.
Its major rivals had lower debt ratios. As of March 31, Evergreen Marine Corp (長榮海運) reported a debt-to-asset ratio of 61.6 percent, while Wan Hai Lines Ltd (萬海航運) had an even lower ratio of 57.4 percent.
Photo courtesy of Yang Ming Marine Transport Corp
After repaying debts, Yang Ming’s relationship with banks should improve, chairman Cheng Chen-mount (鄭貞茂) told an online investors’ conference in Taipei.
“It is our goal to lower the debt-to-asset ratio to less than 60 percent,” Yang Ming spokeswoman Ho Hsiu-chi (何秀綺) said by telephone.
Yang Ming plans to use the remaining NT$13 billion for overhead and new vessels, but Ho said the company had not decided which type of vessels it would purchase.
Cheng said the firm was still researching the plan, adding that the best deal would maintain its market position without damaging its financial strength.
Yang Ming owns 88 vessels with a combined capacity of 623,124 twenty-foot equivalent units (TEU), which ranks it ninth among global container shippers with a market share of 2.5 percent, company president Patrick Tu (杜書勤) said.
The company contracted CSBC Corp Taiwan (台灣國際造船) to build 10 vessels with 2,800 TEU each in 2018 and has received nine vessels since last year, Tu said, adding that it would receive the last one by the end of the year.
The company would also receive 11 new charter vessels with a capacity of 11,000 TEU each by the end of next year, Tu said, adding that the new ships would help Yang Ming meet high cargo demand.
Regarding US President Joe Biden’s executive order that promotes competition in the ocean transportation industry, Tu said it would not affect freight rates, as Washington is mainly targeting anti-competitive behavior.
Sea shippers have not discussed shipping rates for a long time, while the issue of congestion at ports remains, as demand still far exceeds supply, he said.
Apple Inc’s iPhone 13 debut was met with a stock slump on Tuesday, keeping with a tradition of poor share price performance on the day new devices are unveiled. Shares of the technology giant sank after Apple executives, including chief executive officer Tim Cook, presented the new lineup of phones and other devices. The stock fell 1 percent to close at US$148.12 in New York trading. Prior to Tuesday, Apple’s shares fell on three-quarters of the days Apple unveiled new iPhones, data compiled by Bloomberg showed. Excluding Apple’s 8.3 percent rally on the day cofounder Steve Jobs announced the first iPhone in
As Google expands its footprint in Taiwan, it plans to recruit software and hardware talent for its Google Nest smart device team, a chip development team, and teams to support its Pixel and Chromebook products, Google Taiwan said yesterday. Supply chain management talent will also be in demand, the company said at an online event. “There will always be openings for software engineers, hardware engineers and project managers,” Google Taiwan human resources head Vanessa Lu (呂亞樵) said. “The strength of the Taiwanese industry is very clear,” Lu said, adding that the company would continue to invest in Taiwan. Lu also doused some
BEATING SCHEDULE: Government plans are for nacelle assemblies to be totally local from next year, but Orsted Taiwan said that it was going ‘above and beyond’ Wind turbine manufacturer Siemens Gamesa Renewable Energy SA yesterday inaugurated Taiwan’s first nacelle assembly plant at the Port of Taichung, its first assembly facility for offshore nacelles outside Europe. Vice Premier Shen Jong-chin (沈榮津), a long-time champion of Taiwan’s ambitions to become a regional hub in the offshore wind farm industry, described the plant as a “milestone” at a ceremony at the plant. “The completion of Siemens Gamesa’s nacelle assembly plant is a milestone for the development of the offshore wind farm industry in Taiwan and a step toward localizing the supply chain,” Shen said. “This is only the beginning. My great hope
ROBUST DEMAND: 5G, AI and Internet of Things technologies are driving growth and employment, as the company plans a new plant in Hsinchu County Contract electronics manufacturer Wistron Corp (緯創) plans to invest about NT$11.1 billion (US$400.58 million) in Taiwan, in line with its global deployment strategy, the Ministry of Economic Affairs said on Friday. The company’s investment is also a demonstration of robust demand for 5G, artificial intelligence (AI) and Internet of Things applications, the ministry said in a statement. Wistron, spun off from Acer Inc (宏碁) in 2001, is a notebook computer original design manufacturing partner to major PC brands. The company, which is based in Taipei’s Neihu District (內湖), also produces servers, data storage devices, game consoles and communications products for brand clients