SCC looks for silver lining

SHANGHAI: The restructuring of major State-owned big businesses in Shanghai is likely to benefit Shanghai Construction Co (SCC) in the long run, but may not help other local construction firms much as they have to grapple with falling government demand and suspension of projects during the half-year expo period, analysts said.

SCC, the largest locally-based State-owned construction and engineering service provider, said operating revenue rose 33 percent to 18.5 billion yuan in the first half aided by strong returns from expo and highway projects.

"The firm is heavily involved in the construction of expo-related projects, and revenue from these projects contributed significantly to the overall performance," said Wang Wanjin, analyst, Donghai Securities without disclosing the exact amount contributed. As the main contractor for the 18-billion yuan expo-related projects, SCC has participated in 35 construction projects, accounting for 77 percent of the overall construction volume, said a local newspaper.