Guangzhou Shipyard International (GSI) is said to be working aggressively for a project to acquire CSSC Guangzhou Longxue Shipbuilding.

At a recent shareholders' meeting of GSI, Chairman Han Guangde announced that GSI would acquire CSSC Guangzhou Longxue Shipbuilding and move its entire production facility in Guangzhou to Longxue with an expectation that the yard’s productivity issue would be solved.

GSI held an extraordinary shareholders' meeting on November 25 and passed a bill on H-stock private placement after deliberation. Through this placement, CNY 2.5bn ($410m) will be secured, of which CNY 1bn is planned to be put in the acquisition project, the company said.

Relatively small yard GSI is to acquire several times bigger Longxue, which is being said figuratively that “A snake is trying to eat up an elephant.”