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Hidden Gems: CIMC
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Name: China International Marine (Group) Co. Ltd. (CIMC)
Listed: Since 1994 on Shenzhen Stock Exchange
President: Ma Baoling (since 1992)
Employees: 50,000
Revenue (2006-07): US$ 4.3 billion
People unfamiliar with the logistics business probably don't know that most of
the world's shipping containers come from one company in China, China
International Marine (Group) Co. Ltd. or CIMC. The container and trailer firm
has a distinct growth strategy: buying its competitors.
CIMC was formed in 1980 through a joint venture between China Merchant Holdings
and the East Asiatic Company Limited, and has used acquisition as a way to move
into most major areas of the storage container industry. Last year, CIMC
purchased an 80% stake in the trailer and storage tank business of the Dutch
firm Burg Industries, thus expanding into Europe and cementing its position as
the world's largest producer of shipping containers with a market share of over
50%. Today the company has 50 subsidiaries and 50,000 employees worldwide.
Domestically, CIMC's container depots are located at each of China's major
ports. In August 2007, the company announced its plans to acquire 42% of Enric
Energy Equipment Holdings, one of China's leading producers of storage
containers for natural gas. But storage containers are not the only product that CIMC is involved in. In 2002, the company moved into the transport trailer
market by purchasing a small local firm. Two years later, it acquired two of
China's largest trailer manufacturers, Yangzhou Tonghua and Zhumadian Huajun to
establish itself as a leading player in that market. CIMC is also a competitor
in the airport equipment business. It produces passenger boarding bridges, full
automatic cargo & logistics handling systems and automatic solid parking
systems. One of its most recent designs for passenger boarding bridges is a
model for the Airbus A380 for Paris' Charles de Gaulle International Airport. In
June 2007, the company announced another coup: a joint-venture with Japanese
companies Fuji and Sumitomo to open a factory in Qingdao that will build garbage
trucks for China's domestic market.
CIMC has performed a remarkable number of acquisitions in a period of less than
10 years. This method has helped add value to the company and allowed it to
control more of the whole storage product supply chain. This ensures smoother
operations and greater cost control.
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