Pingtan Marine Enterprise (NASDAQ:PME) completed construction on its two squid jigging vessels and they are ready to depart for their fishing designation in the international waters of Southwest Atlantic and Southeast Pacific Oceans by late December 2016.
Pingtan currently operates 135 fishing vessels, 12 of which are operating in the Bay of Bengal in India along with 13 vessels operating in Indo-Pacific Waters. With the two squid jigging vessels, the total 27 fishing vessels will make the company's production capacity recover to approximately 23%.
The Company believes that the newly constructed squid jigging vessels will increase fishing efficiency and accuracy and it expects to begin recognizing sales from these two squid jigging vessels during the first quarter of 2017.
Mr. Xinrong Zhuo, Chairman and CEO of the Company, commented, "The two large-scaled squid jigging vessels are twice the average gross tonnage of our other fishing vessels, and we are excited to launch them into a new fishing territory, the international waters of Southwest Atlantic and Southeast Pacific Oceans. Since mid-2015, market squid prices started to climb and, in 2016, China's bulk purchase prices have more than doubled. We expect that the two squid jigging vessels will diversify our product mix by providing different type of squid products from the regions and accelerate the expansion of our fishing territories worldwide, as well as allowing us to remain competitive as we may rapidly adjust our strategy in light of market changes."