China Shipping Group, the second biggest oceanic transportation conglomerate
in China, plans to build its first shipyard by the end of 2008.
This is the second time in less than two months that a heavyweight
centrally-administered state-owned enterprise has branched out into the
The Shanghai-based shipping group spent 3.8 billion yuan taking
over the assets and debts of the Jiangdu Shipping Company in east China's Zhejiang Province and renamed the wholly-owned subsidiary
China Shipping Industrial Company (Jiangsu).
Ground for the new shipyard -- expected to cover an area of 187 hectares and
stretch 3,500 meters along the coastline -- has already been broken in the
Yanjiang Development Zone of Jiangdu.
The group's product line mainly involves Panamax Container ships with a
deadweight of less than 80,000 tons, including bulk cargo ships and oil tankers,
and a variety of floating docks with a lifting strength of no more than 30,000
The parent China Shipping Group said it would lift the annual production
capacity of its shipyard to 1.5 million deadweight tons over a period of three
On completion, the shipyard is expected to achieve annual sales revenue of 10
billion yuan and generate a yearly tax revenue for the government of more than 1
billion yuan, it said.
The existing six dockyards of China Shipping Group situated in Shanghai and
Guangzhou only engage in ship repairs, ship conversions and hull maintenance.
China Shipping Group, established in 1997, boasts five specialized shipping
fleets -- oil tankers, coastal vessels, passenger ships, container vessels and
special cargo ships -- making a total of more than 440 vessels with an aggregate
deadweight of 15 million tons and an annual traffic volume of over 270 million
It is also the holding company of three publicly listed companies, China
Shipping Development, China Shipping Container Lines and China Shipping (Hainan) Haisheng which are traded on either the Hong
Kong or Shanghai stock markets.
China's is now the world's third largest shipbuilding power after the
Republic of Korea and Japan.
The Shanghai Baosteel Group Corp., China's largest steel producer, marched
into the shipbuilding industry in March by jointly investing 10 billion yuan
with China State Shipbuilding Corporation to build the country's largest
shipbuilding base at the estuary of the Yangtze River. (1 U.S. dollar=7.73 yuan)
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