China State Shipbuilding Corp. (CSSC) is once again pushing ahead with reorganization of the yards under its wing. Its affiliate Chengxi Shipyard Co. (in Jiangyin, Jiangsu Province) has just made an arrangement with CSSC Offshore and Marine Engineering (Group) Co. (former Guangzhou Shipyard International Co. in Guangzhou, Guangdong Province) to lease its Yangzhou Yard (former Guangzhou Yangzhou Shipyard). Yangzhou Yard, once run by private Yangzhou Kejin Shipbuilding Co. (in Yangzhou, Jiangsu Province), had been acquired by Guangzhou Shipyard International. With the completion of small- and medium-size bulker newbuildings due to peak between 2016 and 2017, CSSC seems to be aiming to reinforce Chengxi Shipyard’s production capacity and allow CSSC Offshore and Marine Engineering to devote itself to its own foothold.
CSSC Offshore and Marine Engineering announced the lease arrangement toward the end of 2015. The lease period runs from Oct. 1, 2015 to Dec. 31, 2016. Its extension can be determined through consultation by both parties. The lease fee for 2016 was fixed at 676.6 billion yuan.
Yangzhou Kejin Shipbuilding was founded in 2004. According to a local newspaper, it has five 50,000-ton and two 170,000-ton slipways at a 624,000-sqm site. It had built product carriers and chemical tankers weighing less than 50,000 dwt and gas ships before it was taken over by Guangzhou Shipyard International in 2014. Following the acquisition, it was renamed Guangzhou Yangzhou when its parent company changed its name.
At present, Chengxi Shipyard undertakes newbuilding construction at a 70,000-ton slipway located at its head-office yard and two leased slipways – one from Jiangsu Hongqiang Heavy Industry (in Qitong, Jiangsu Province) since 2009 and another from Huatai Group Co. (in Rugao, Nantong, Jiangsu Province) since 2014. These facilities have now been joined by those of Guangzhou Yangzhou.
Chengxi Shipyard is known as the top builder of 64,000-dwt bulkers which are built in large numbers in China. In 2015, it completed 30 units totaling 1.72 million dwt, up from 11 units in 2014. It launched the year’s first vessel at the leased Yangzhou Yard on Jan. 13. It has Chengxi Shipyard (Xinrong) Co. (in Jingjiang, Jiangsu Province) and Chengxi Shipyard (Guangzhou) (former Guangzhou Longxue Shipbuilding Base in Guangzhou, Guangdong Province) as it subsidiary repair yards.
CSSC Offshore and Marine Engineering currently has three yards under its wing. After taking over Guangzhou Shipyard International, it made Guangzhou Longxue Shipbuilding and CSSC Huangpu Wenchong Shipbuilding (created through the merger of Guangzhou Huangpu Shipbuilding and Guangzhou Wenchong Shipyard) its subsidiaries in 2013 and 2014, respectively.
CSSC sees it as its fourth core builder along with Jiangnan, Hudong and Waigaoqiao, leaving South China as its franchised territory.
The PC-3 Arctic ice class 28.500 tdw heavy lift carrier AUDAX, built for ZPMC-Red Box joint venture and designed by Aker Arctic of Finland, left the yard last week for picking the first module cargoes for the Yamal LNG project. The sister vessel PUGNAX is expected to be completed by the Guanzhou Shipyard International in March 2016.