China Knowledge News

China Shipbuilding Industry (CSIC) plans to issue RMB 1-billion in sale of unsecured medium term notes According to a 'China Knowledge' report, China Shipbuilding Industry Corp or CSIC, the parent of China Shipbuilding Industry Co Ltd<601989 >, has said that it plans to issue RMB 1 billion worth of unsecured medium-term notes with a maturity of five years on the interbank market on Jun. 28. Proceeds from the offering will be used to replenish the company’s working capital.

According to a Feb. 19 report from Steelguru.com, China Knowledge quoted statistics released by the Ministry of Industry and Information Technology saying the gross output of China shipbuilding industry was $80.3b in 2009 up by 28.7% YoY. The ministry said growth was 31.1 percentage points slower than in 2008. (Source: Steelguru.com)

According to an August 18 report from China Knowledge, China's shipbuilding enterprises received new shipbuilding orders totaling 4.1 million dead weight tons in July, accounting for nearly 70% of the world's total, according to statistics released by the China Association of the National Shipbuilding Industry. (Source: China Knowledge)

STX Shipbuilding Co said Tuesday it plans to make an initial investment of 35 billion Korean Won to set up a wholly-owned subsidiary in , STX () Business, reports said. STX Shipbuilding said in a statement to regulators that STX () Business would be in charge of management and leasing of STX's facilities in . STX Shipbuilding would be the first Korean company to build a shipyard in , and the first Korean-owned overseas shipyard capable of building a whole vessel. However, Samsung Heavy and Daewoo Shipbuilding have built (or are currently building) facilities outside for ship blocks, i.e. iron structures that form a ship. STX has invested $1b in to build a shipyard comprising production facilities…

China State Shipbuilding Co Ltd (CSSC) has inked a framework agreement with local government to invest to build a shipping parts and accessories production base in , according to China Knowledge. The new production base will be located in Panyu, , which is expected to be the largest marine diesel engine manufacturing base on Mainland . CSSC is now running a marine diesel engine production base in jointly with 's Mitsui Shipbuilding Ltd, with an annual manufacturing capacity of three million horsepower. Source:  Knowledge

China reported its shipbuilding tonnage was up 30% to reach 18.93 million tons in 2007, according to a report from China Knowledge. The country exported 14.9 million tons of ships in tonnage to 151 countries and regions, up 25.6% year-on-year, and the export value reached $12.24 billion, surging 51.1%, according to the National Development and Reform Commission (NDRC). China's share in the global shipbuilding market was 23% last year, up 4% over the previous year. During the same time, the country's new shipbuilding orders in tonnage surged 132% to 98.45 million tons, accounting for 42% of the global total. The total orders in tonnage of China were 158.89 million tons at present, accounting for 33% of the global total.

Rizzo-Bottiglieri-De Carlini Armatori SpA (RBD Armatori), an Italian shipping company, reportedly signed a $180m contract with Shanghai Waigaoqiao Shipyard, for two 177,000-dwt ships, which will be the largest ships in the Italian company's fleet, according to a report on China Knowledge. The ships are reportedly scheduled for deliver in 2009 and 2011.

China State Shipbuilding Co. said that its 2007 profit soared more than tenfold from 2006, powered by rising global demand, according to a report on www.chinaknowledge.com. China State Shipbuilding predicted in its statement published yesterday that its net profit for 2007 may jump 950%-1050%, without giving an exact figure. While reaping good earnings in its low speed marine diesel engine business, the company also saw significant gains in its ship manufacturing and mending sectors, boosted by China's booming ship industry. (Source: www.chinaknowledge.com)

Hudong Heavy Machinery Co., said that it will use proceeds to fund its purchase of shipyards and to invest in new technologies. With the proceeds, Hudong will buy 100% of Shanghai Waigaoqiao Shipbuilding Co. and CSSC Chengxi Shipyards and 54% of Guangzhou Wenchong Shipyard. It will also invest in technology upgrades. The company, which is the biggest maker of diesel engines for ships in China, will sell up to 400 million A-shares at RMB 30 per share in exchange for RMB 9 billion in assets and RMB 3 billion in cash, it said in a statement to the Shanghai Stock Exchange Monday. Hudong’s controlling shareholder, China State Shipbuilding Corp., will buy 59% of the share issue. The other buyers include Baosteel Group Corp., China Life Insurance Co., Shanghai Electric Group Corp.

According to China Knowledge, China State Shipbuilding Corp, one of the world's five biggest shipbuilders, will take direct control of Shanghai-listed Hudong Heavy Machinery before its planned US$800 million IPO on the Hong Kong Stock Exchange next year, according to the South China Morning Post on Thursday. Hudong Machinery, which has a 60% market share in Chinese production of low-speed diesel engines for ships, said Wednesday its two largest shareholders will transfer their combined 53.27% stake to their parent, State Shipbuilding. The transaction will not involve any cash. According to Hudong Machinery, the deal has already won approval from the China Securities Regulatory Commission (CSRC) and the State-owned Assets Supervision and Administration Commission.

According to reports, Guangzhou Shipyard International Co. Ltd., who has already seen its Hong Kong-listed shares surge almost six-fold this year, said it will report a 500% third-quarter profit increase from last year, thanks to higher efficiency and improved margins. A shorter shipbuilding cycle has also helped Guangzhou Shipyard, the only listed shipbuilding unit of China's largest ship builder, China State Shipbuilding Corp. (CSSC), to sell more ships at higher margins during the quarter ended September 30. The company posted a $1m profit for the third quarter of 2005. In an announcement on Tuesday, it forecasted a five-fold increase in the same period. The company is benefiting from high demand for new tankers and low labour costs that help it win orders from overseas.

China National Offshore Oil Co. (CNOOC) could announce a liquefied natural gas (LNG) supply deal in about two to three months, its first in four years, reported China Knowledge Online. This move signals that the company, which is leading China into the LNG market, is ready to pay higher prices. Prices have approximately doubled since China’s first landmark deal four years ago at $3 per million British thermal unit (BTU). The country appears to be accepting that if it continues to stall supply talks, it will not be too successful in promoting the use of LNG in the country. According to an anonymous CNOOC senior official, the deal will restart CNOOC’s drive to obtain supplies for its five planned terminals by end 2007.

According to reports, China State Shipbuilding Corp. (CSSC) is making plans for an initial public offering on the Hong Kong Stock Exchange to raise at least US$500 million, according to a report in the South China Morning News. The company is reported to be planning a share sale for the first half of next year and has engaged JPMorgan Chase & Co. to handle the IPO. CSSC is a State-linked company engaged in shipbuilding, ship repairing, research & design, manufacturing marine-related equipment, and in trading firms. In the next five years, it aims to increase its annual shipbuilding output from 5 million deadweight tonnage in 2005 to 9 million in 2010. Source: China Knowledge

The four major shipbuilding bases in Shanghai manufactured 71 ships in 2005 with a total value of about $2.1 billion, up 15.4% year-on-year, China Knowledge reported. The shipbuilding capacities of the four major bases exceeded 4.3 million dead weight tonnages (DWT) in 2005, an increase of more than 1.2 million DWT over 2004. The four bases are Hudong-Zhonghua Shipbuilding (Group) Co. Ltd, Jiangnan Shipyard (Group) Co. Ltd., Shanghai Waigaoqiao Shipbuilding Co. Ltd, and Shanghai Shipyard & Chenxi Shipyard Co. Ltd. In 2005, the four bases obtained RMB $4.6 billion worth of contracts and received new orders of 68 ships, or 6.9 million DWT.

China’s shipbuilding capacities have reached 12 million dead weight tonnages (DWT) in 2005, up 36 percent year-on-year, to be ranked third largest worldwide, according to the Commission of Science Technology and Industry for National Defense, as reported by www.chinaknowledge.com. The commission said China received record high shipbuilding orders of 15 million DWT last year. The sales revenue of all the country’s shipbuilding companies reached a total of about $12 billion with an industry profit of more than $371.6 million and a ship export value of more than $4 billion. China State Shipbuilding Corporation and China Shipbuilding Industry Corp., one of the country’s biggest conglomerates in the industry, built 5 million and 3 million DWT of ships respectively in 2005.

Reports indicate that China’s shipbuilding capacities have reached 12 million dead weight tonnages (DWT) in 2005, up 36% year-on-year, to be ranked third largest worldwide, according to the Commission of Science Technology and Industry for National Defense, as reported on the official website of Chinese Academy of International Trade and Economic Cooperation. The commission said China received record high shipbuilding orders of 15 million DWT last year. The sales revenue of all the country’s shipbuilding companies reached a total of RMB 100 billion with an industry profit of more than RMB 3 billion and a ship export value of more than $4 billion. Source: China Knowledge Press

Patriot Mechanical Handling Inc. received an order worth $3.28 million from Dalian New Shipbuilding, which is based in Dalian, China, according to a China Knowledge report. The Dalian order calls for Patriot to deliver 4 CTUs (Conductor Tensioning Systems) on the new builds which are purchased by Noble drilling, Seatankers, and COSL respectively. Patriot also signed a Memorandum of Understanding (MOU) with Dalian New Shipbuilding to supply the latter with additional Subsea handling equipment over the next 12 months. Source: China Knowledge