CSSC South China Development Plan Speeds up.
Its layout in south China will be the most important step, according to the development strategy China State Shipbuilding Corporation (CSSC) makes for 2011 to 2015. Currently, related top executives busy themselves with the research of details.
Taking the LNG (liquefied natural gas) vessel as well as some hi-tech and high valued-added technologies and products as its operation goals, the Beijing-located group will accelerate the business expansion and upgrade of its industrial and product structures in the near future.
As a matter of fact, CSSC launched five measures to ride out the global financial turmoil, including promotion of its ship industry construction and development in south China, after the State Council, China's cabinet, had greenlighted the ship industry adjustment and revitalization plan in 2009.
The shipbuilding development patterns at both the Yangtze River Estuary and the Bohai Sea Rim Economic Circle have been mature now, while there is a high growth potential in south China, according to an official at the China Association of National Shipbuilding Industry (CANSI).
In particular, the moving and reorganization scheme of Guangzhou Shipyard International Co., Ltd. (SHSE: 600685), listed arm of CSSC, has drew more attention of insiders. An analyst with PingAn Securities Co., Ltd estimates that the southern Chinese city of Zhongshan, Guangdong Province, will possibly become the small- and medium-sized ship production base of Guangzhou Shipyard International, and even its parent.
Different from CSSC's sizable ship base and ocean engineering base separately lying in Guangzhou and Zhuhai, another two cities in the province, the Zhongshan-located one will be mainly designed to yield about 60,000-tonnage refined oil carriers, said people with the direct knowledge of the matter.
The Chinese shipbuilding group has decided to settle its ship and ocean engineering base measuring 1,660 hectares in the Zhuhai Gaolan Port Economic Zone, with a costal length of 9,000 meters. And total investment is estimated at more than CNY 43 billion.
The project composed of eight production lines will be created as a world-class large-scale shipbuilding base, upon the construction plan made by CSSC.
Inaugurated in Fangcun District, southwest Guangdong, in 1993, Guangzhou Shipyard International has to abandon a large number of orders owing to the production capacity shortage. Therefore, it is so urgent for the Shanghai-listed company to create new shipyards.
Last year, the shipbuilder once intended to spend CNY 3.041 billion acquiring Guangzhou Wenchong Shipyard Co., Ltd. (GWS) from its parent CSSC, but this scheme aborted ultimately amid the worldwide economic recession. Sources said that Guangzhou Shipyard International would resume the purchase plan in due course.