Hainan Airlines' parent to expand shipping business

Jul. 16, 2009 (China Knowledge) - HNA Group, the parent of China's fourth-largest airline, Hainan Airlines Co Ltd<600221><900945>, on Wednesday signed a strategic cooperation agreement with Zhoushan Jinhaiwan Shipyard Co, aiming to expand its business and become a comprehensive group, the Shanghai Daily reported.

Under the agreement, HNA Group will hold a 50% stake in the company. Furthermore, it ordered 30 ships.

The cooperation is expected to help Jinhaiwan remain a fast developer despite the gloomy outlook for the industry. The company aims to increase its output value to RMB 20 billion and its profit to RMB 1.7 billion in 2010.

HNA Group yesterday also signed an agreement with Zhejiang Energy Group to set up a joint venture that will be engaged in coal and ore transportation.

Hainan Province and Zhejiang Province will jointly develop the shipbuilding, aviation and logistics industries. The agreements were part of a cooperation agreement between the two regions.

HNA Group is the fourth-largest airline group in China and currently owns 12 airlines, 11 airports, 51 hotels, five shipping companies, 13 finance firms and two business groups.