SERVICES

Maersk shuts container factory in China

Copenhagen - Danish shipping group A.P. Moller-Maersk will shut a transport container factory in China and instead focus on producing refrigerated containers for food, it said on Thursday. Demand for refrigerated containers has grown thanks to higher global demand for fresh produce and other commodities

Copenhagen - Danish shipping group A.P. Moller-Maersk will shut a transport container factory in China and instead focus on producing refrigerated containers for food, it said on Thursday.

While the market for so-called dry containers has been squeezed by increased competition, demand for refrigerated containers has grown thanks to higher global demand for fresh produce and other commodities, Maersk said in a statement.

The company’s Dongguan container factory, which has 2,240 employees and can produce 100,000 40-foot containers a year, has been idle since the beginning of December, Maersk said.

Maersk, the world’s biggest container shipper, warned in November that a trade war between China and the United States would hit demand for container shipping in the coming years.

Pressed for time?

Get the best news of the week in your inbox

Subscribe ››