Shipyard to break records By Xie Ye (China Daily) Updated: 2005-06-04 08:55
SHANGHAI: Construction started on Friday on what will become the world's
largest shipyard, marking a major step forward in China's ambition to become the
world's leading ship builder.
In the first phase of the US$3.6 billion project, the Jiangnan Shipyard Corp,
a subsidiary of China State Shipbuilding Corp (CSSC), is relocating to Changxing
Island to make way for Shanghai Expo 2010.
The Jiangnan Shipyard will expand its shipbuilding capacity from the current
800,000 deadweight tons (DWT) a year to 4.5 million by 2010.
The yard's first ship is expected to be delivered by 2009.
In the second phase of development, CSSC's subsidiaries, such as Hudong and
Waigaoqiao, will add more yards along Changxing island's 8-kilometre coastline.
By 2015, CSCC is expected to have an annual capacity of 8 million DWTs, half
of China's current production capacity.
By then, Changxing is expected to have become the world's largest shipyard.
Shanghai will also become the world's largest shipbuilding base, tripling its
capacity to 12 million DWTs by 2015.
"The central government has called on China to become the largest shipbuilder
in the world. The Changxing base is the most important step forward in this
plan," said CSSC General Manager Chen Xiaojin on Friday.
The shipbuilding industry is valuable to the Chinese Government as it
promotes domestic manufacturing and machinery industries, creates job
opportunities and revenue, and improves the country's naval capability.
The country's shipbuilding industry has achieved an annual average growth of
17 per cent over the past few years and China now accounts for a quarter of the
world's shipbuilding market, up from less than 5 per cent five years ago.
Japan and South Korea each account for one third of the global shipbuilding
market.
"With the construction of Changxing we are breathing down the necks of Japan
and South Korea," Xu Lunfang, senior engineer at CSSC's Chengxi Shipyard, said.
"The market competition is set to intensify."
Chen said the Changxing yard offers CSSC an unprecedented opportunity to
develop its business as the global shipbuilding market is still expanding.
The yard will also increase Chinese production of high-tech and
high-value-added ships, including liquefied natural gas carriers and super oil
tankers.
Friday also witnessed the 140th anniversary of the Jiangnan Shipyard.
The yard was founded during the late Qing Dynasty, and was the first
manufacturing base to produce steel, naval ships and steel
cannon.
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