China State Shipbuilding Corporation, one of the country's largest shipbuilding conglomerates, has set up a fully-owned logistics subsidiary in Shanghai, according to a statement posted on the company's website.

The new operation, CSSC Logistics Co is an extension of its purchasing department, and has been set up with registered funds of 320 million yuan ($50 million) to focus on expanding business in sectors including steel, coal and iron ore, according to CSSC.

The new company is expected to achieve annual revenues of 70 billion yuan by the end of 2015, said Chairman Sun Wei, launching the new venture on Aug 23.

At the opening ceremony, the company announced it had signed strategic agreements with a number of industrial groups including Baosteel, Shougang Group, Pan Asia Mining and Russian Energy Investment Group.

CSSC saw a 62.7 percent drop in its profits during the first quarter of the year, to 263 million yuan, which it blamed squarely on the industry downturn.