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Chinese manufacturers are to suspend manufacture of standard shipping
containers for two months in a bid to tackle a growing oversupply problem.
The move was reported by the official Xinhua news agency which quoted a
China Container Industry Association view that there had been excessive
investment in production of dry cargo containers.
According to Xinhua the Chinese box making industry has a production
capacity of 4.5 million TEUs a year with the figure due to rise to 5.8
million TEUs in 2007 but demand is only 2.4 million TEUs.
In addition to freezing producing from the Chinese new year in late January
leading container manufacturers such as China International Marine
Containers Group, Singamas Container and CXIC Group are reported to be
mothballing expansion projects.
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