On April 15, China State Shipbuilding Corporation (CSSC) issued an announcement stating that on April 13, its subsidiary, Guangzhou Shipyard International, issued a parent company letter of guarantee on behalf of its wholly-owned subsidiary, Guangzhou Guangship Equipment and Marine Engineering Co., Ltd. (Guangship Equipment), for a newly signed contract to build a polar condensate oil tanker.
According to the announcement, the maximum amount of this guarantee is RMB 984.192 million (approximately US$144.38 million), and the guarantee period is from the date of issuance of the guarantee to the date of delivery of the hull (the latest delivery date under the contract is April 30, 2029). Guangship Equipment will also provide a counter-guarantee.
Based on CSSC’s projected guarantee limit for 2026, Guangzhou Shipyard International may provide guarantees of up to RMB 2 billion to Guangship Equipment. To date, a cumulative total of RMB 984,192,000 (including the amount of this guarantee) has been utilized, leaving a remaining guarantee limit of RMB 1,015,808,000.
Guangship Equipment was established in November 2008 with a registered capital of RMB 288.61 million and is a wholly owned subsidiary of Guangzhou Shipyard International.