Shanghai Zhenhua Port Machinery Co., the world's biggest maker of container cranes, plans to sell as many as 200 million new shares as part of plans to raise 3.5 billion yuan ($450 million) to fund expansion. The sale price won't be lower than the stock's average in the 20 trading days prior to the issue of the share prospectus.

Zhenhua, which has 74 percent of the global market for container cranes, is expanding its production base as ports enlarge their capacity for handling freight. Last month the company said it won an order to supply $200 million of cranes to Hanjin Shipping Co., South Korea's largest shipping line.

The unit of China Communications Construction Co., the country's biggest builder of ports, plans to invest 3.3 billion yuan to fund four expansion projects, and use 200 million yuan for working capital. The company may borrow from banks if the share sale doesn't raise enough to fund the plans.

Zhenhua's sales may rise as much as 30 percent this year after jumping 50 percent to $2 billion in 2006. The company is scheduled to report 2006 earnings on March 20.

Source:佚名