GUANGZHOU Shipyard International Co, a unit of China's biggest shipbuilder, said yesterday full-year profit would rise 54 percent as an acquisition would double capacity and help it expand into making small container ships.

Profit will jump to 1.45 billion yuan (US$212 million), or 2.25 yuan a share, Zeng Xiangxin, chief accounting officer, said yesterday. The company posted a 2007 net income of 938.6 million yuan.

Guangzhou Shipyard, a builder of tankers, is buying Guangzhou Wenchong Shipbuilding Ltd from its parent as part of a reorganization of the industry in China, Bloomberg News said. Global trade may expand 5.8 percent in 2009, an increase from an estimated 5.6 percent this year, the International Monetary Fund said in April.

"The acquisition will help consolidate our leading position in handy-sized vessel segment," President Han Guangde said. "The planned, enlarged new entity will also enhance our bargaining power in sourcing raw materials."

Guangzhou Shipyard fell 3.7 percent to close at HK$17.52 yesterday in Hong Kong trading. Daewoo Shipbuilding & Marine Engineering Co and other Korean shipyards fell yesterday on concerns of order cancellations.

Wenchong posted a profit of 625 million yuan on sales of 3.19 billion yuan in 2007, China State Shipbuilding said June 30. Guangzhou Shipyard has orders for 65 vessels for delivery to 2012, Han said.