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Maersk is selling its reefer manufacturing business MCI to CIMC for $987.3 million
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With the sale, China has bolstered its near monopoly in container manufacturing
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CIMC will take over MCI’s entire organization and assets, including the reefer factory in Qingdao, China
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The transaction is expected to close in or before 2022
China International Marine Containers Ltd. (CIMC) will become the world’s biggest manufacturer of shipping containers once it acquires reefer manufacturer Maersk Container Industry (MCI) for nearly a billion dollars.
Maersk announced it signed an agreement on September 27 to sell MCI to CIMC, headquartered in Shenzhen, China, for US$987.3 million, to be paid on a cash and debt free basis and subject to regulatory approvals.
With the sale, China has strengthened its near monopoly in the container manufacturing sector. Chinese factories now account for more than 96% of the world’s dry cargo containers and 100% of the world’s refrigerated containers.
CIMC will take over MCI’s entire organization and assets, which include the reefer factory in Qingdao, China, as well as its R&D and test engineering facilities in Tinglev, Denmark.
The transaction is expected to close in or before 2022. Until closing, CIMC and MCI remain two separate companies and continue to run their businesses as usual, Maersk said in a release.
The Star Cool refrigeration units will remain a key part of the way Maersk supports its customers’ cold chain needs as Maersk will continue its cooperation with MCI in the future, the statement said.
“We believe that we in CIMC have found a good long-term owner of MCI. The divestment of MCI is part of A.P. Moller-Maersk’s business transformation, where focus is on being an integrated container transport and logistics company creating customer value across the entire supply chain,” said Henriette Hallberg Thygesen, CEO of fleet & strategic brands at A.P. Moller-Maersk.
Founded by Maersk in 1991, MCI has been a part of the company for more than 30 years. Over the years it has transformed into a business focusing entirely on manufacturing refrigerated containers and in 2020, the company delivered its most profitable result since its foundation.
Mai Boliang, chairman and CEO of CIMC, said that by leveraging technology and innovation, the company wants to create a new growth platform within cold chain.
MCI is headquartered and has R&D and test engineering facilities in Denmark and produces reefer containers and Star Cool refrigeration units in Qingdao, China. Its 2,300 people will become employees of CIMC upon closing.
Founded in 1980 in Shenzhen, CIMC provides equipment and services for logistics and energy industries. CIMC Containers is the largest business segment and specializes in the manufacture of dry containers, refrigerated containers and special containers.
Photo from Maersk website
