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Rongsheng stands firm amid industry gloom

Updated: 2012-05-30 15:29
By Hu Yang ( chinadaily.com.cn)

Rongsheng stands firm amid industry gloom

The No 4 dock at Jiangsu Rongsheng Heavy Industries Co Ltd's Nantong shipbuilding base on May 26, 2012. With a dimension of 139.5*580m,the dock is equipped with a 1600-T gantry crane, the world's largest. [Photo/chinadaily.com.cn] 


China Rongsheng Heavy Industries Group Holdings Ltd, the nation's largest private shipbuilder, may seek "cooperation with one or two ship builders" in 2013 or 2014, grasping the opportunity emerging from an industry recession, according to Xu Yifei, assistant president of Jiangsu Rongsheng.

"We have the intention to form strategic cooperation with one or two well-established shipbuilders next year or the year after if conditions are right," Xu told chinadaily.com.cn, "we'd like to find some coastal docks for our offshore engineering products."

Xu said the sluggish shipping market and the debt crisis in Europe have dealt a big blow to shipbuilding, and a long and harsh industry consolidation is inevitable.

But Rongsheng would rather see it as an opportunity, he added.

In response to this round of recession, Rongsheng has been actively upgrading technology and design. It has also put more focus on the offshore engineering sector to further diversify its business.

Rongsheng is setting up its offshore engineering company in Singapore, aiming to take advantage of Singapore's technology and existing market to deepen its penetration in the global offshore engineering market, according to Xu.

Dow Jones reported earlier this month that Rongsheng has secured orders to construct offshore rigs for an overseas company, citing an unnamed source.

The company entered the marine engineering sector years ago. China's first deepwater pipe-laying crane vessel, known as Hai Yang Shi You 201, was built by Rongsheng. The vessel can lay pipes at depths of 3000 meters and lift 4000 metric tons and will operate at the South China Sea's Liwan 3-1 gas field.

Rongsheng's president, Chen Qiang, said in an earlier interview that he hoped orders from marine engineering will make up about 40 percent of the company's new orders this year.

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