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China Rongsheng Heavy Industries News

19 Jan 2016

Chinese Shipyards Sails in Rough Seas

Shipbuilders in China will continue facing rough weather. According to a report in Bloomberg, new orders received by Chinese shipbuilders fell by nearly half last year from 2014, suggesting more consolidation is in order as the country’s appetite for raw materials wanes and shipping rates languish at multiyear lows. Shipyards in China received new orders amounting to 31.3 million deadweight tons last year, a world-leading 34 percent share of the global market. Backlog orders fell 12 percent to 123 million deadweight tons, or 36 percent of global market share. The shipbuilding will lag behind their foreign rivals as cumbersome financing conditions and prolonged excess capacity continue to crimp industry profits and push smaller shipyards out, experts said.

02 Jul 2015

China Huarong in Distress

China Huarong Energy Co, formerly known as China Rongsheng Heavy Industries, said in a regulatory filing that a memorandum of understanding on the disposal of assets to an unnamed buyer has expired. Huarong announced in March a potential sale of its core shipbuilding and engineering business, subject to formal agreement. Huarong Energy signed the MOU with the potential buyer in April for the sale of its shipbuilding assets as part of its restructuring process. The MOU was effective until 30 June 2015, and the company and the potential purchaser have failed to agree to a deal. A statement from the company says: "The Company wishes to…

17 Mar 2015

China Rongsheng to Sell Shipbuilding Business

China Rongsheng Heavy Industries (RSHI) has entered into a memorandum of understanding (MoU) with an undisclosed third party Chinese investor to sell its onshore shipbuilding and offshore engineering business. Both parties will further negotiate details of the deal, including the scope and list of related assets and liabilities, a stock filing of RSHI said. The MOU will remain in effect until 30 June and is likely to be extended by both parties. China Rongsheng, which is also involved in marine engine building, engineering machinery and energy exploration, has been struggling with a heavy debt burden amid a slowdown in China's economic growth.

21 Apr 2014

China Shipbuilder Rongsheng in 2013 Revenue Freefall

Cheng Quang: Chairman China Rongsheng

During the year ended 31, December 2013 China Rongsheng, the largest non-state-owned shipbuilder in the PRC, reports that revenue of the Company was RmB1,343.6 million, a decrease of 83.1% from RmB7,956.3 million for the year ended 31 december 2012. China Rongsheng Heavy Industries Group Holdings Limited explain that In 2013, the unfavourable operating environment for ship owners persisted amid the unsatisfying performance of the global shipping market in spite of the tepid recovery from 2012. As a result, ship owners requested shipyards to postpone the delivery of new vessels.

10 Apr 2014

Debt-Laden Bulk Shipper to be Liquidated

A Chinese court has ordered a unit of debt-laden dry bulk goods shipper Chang Jiang Shipping Group Phoenix Co Ltd to liquidate its assets, displaying further evidence of the troubles faced by the country's beleaguered shippers. The unit, whose Chinese name is translated as Chang Jiang Jiaotong Keji, is unable to pay its debt or stay solvent, prompting three of its creditors to apply to the Wuhan intermediate court to liquidate its assets, Chang Jiang Shipping said in a filing on the Shenzhen stock exchange. The unit, in which Chang Jiang Shipping owns an 89 percent stake, has ceased to operate. China's shipping sector has been plagued by overcapacity since the global financial crisis because new vessels ordered before the downturn have flooded the market.

10 Apr 2014

Chang Jiang Shipping Faces Asset Liquidation

A Chinese court has ordered a unit of debt-laden dry bulk goods shipper Chang Jiang Shipping Group Phoenix Co. Ltd. to liquidate its assets, displaying further evidence of the troubles faced by the country's beleaguered shippers. The unit, whose Chinese name is translated as Chang Jiang Jiaotong Keji, is unable to pay its debt or stay solvent, prompting three of its creditors to apply to the Wuhan intermediate court to liquidate its assets, Chang Jiang Shipping said in a filing on the Shenzhen stock exchange. The unit, in which Chang Jiang Shipping owns an 89 percent stake, has ceased to operate. China's shipping sector has been plagued by overcapacity since the global financial crisis because new vessels ordered before the downturn have flooded the market.

27 Dec 2013

China's Biggest Shipbuilder Floats Billion HK$ Bourse Offering

Image courtesy of Ronghseng

China Rongsheng Heavy Industries to offer HK$1,000,000,000 worth of 7% convertible bonds due 2016. The estimated net proceeds from the issue of the Convertible Bonds, after deduction of commissions and expenses, would be approximately HK$992,500,000, which will be used for working capital and general corporate purposes and repayment of loans of the Group. The company explains that assuming full conversion of the Convertible Bonds at the initial Conversion Price of HK$1.05 per Share…

06 Dec 2013

Greek Shipowner Doubts Major China Shipbuilder Can Deliver

Rongsheng Shipyard: Rendering credit Rongsheng

China Rongsheng Heavy Industries Group, the country’s largest private shipbuilder, expects to report a substantial full-year loss just months after it appealed to the government for financial help, reports Reuters. Analysts have indicated that the company could be the biggest casualty of a local shipbuilding industry suffering from overcapacity and shrinking orders amid a global shipping downturn. Greek shipowner DryShips Inc. which has four dry-bulk carriers on order at the company’s shipbuilding subsidiary…

07 Aug 2013

China Shipbuilder Hit by Forex Losses on Contracts

Yangzijiang Shipbuilding Holdings Ltd. China’s second-biggest private shipyard, posted a 7.6 percent decline in second-quarter profit because of higher tax and foreign exchange loss on contracts done in euros, reports Bloomberg. Citing a company statement to the Singapore Stock Exchange, Bloomberg say that Net income in the three months ended June dropped to 812 million yuan ($133 million) from 878 million yuan a year ago, while sales rose 12 percent to 4.42 billion yuan. Yangzijiang is among companies diversifying into offshore drilling and production as demand for new bulk vessels decline. The government has urged financial support…

23 Jul 2013

China Rongsheng Delivers Fourth Vale VLOC

Vale VLOC delivery: Photo credti China Rongsheng

China Rongsheng Heavy Industries Group Holdings Limited has delivered the 380,000 dwt class Very Large Ore Carrier (VLOC) 'Vale Caofeidian' to Brazil's Vale S.A. The vessel is the fourth 380,000 DWT class VLOC delivered by the Group this year and its eleventh delivery of VLOC's overall. The Chinese shipbuilders have successfully delivered 11 VLOCs, while most of those remaining have been launched and are under outfitting process. The next VLOC delivering to Vale is also at its final stage for sea trial.

22 Jul 2013

China Tightens Shipbuilders' Credits: Singapore May Benefit

Singapore's Keppel Corp Ltd and Sembcorp Marine Ltd, the world's top offshore rig-makers, stand to be among the winners through Beijing's moves to tighten credit amid a downturn at China's shipyards, reports Reuters. The two companies have been under mounting pressure from Chinese yards offering generous payment terms, price discounts and help with financing, but that may be changing after Beijing pledged to cut credit to industries plagued with overcapacity, and China Rongsheng Heavy Industries Group, the country's largest private shipbuilder, fell into financial trouble. Rongsheng could now become the biggest casualty of a local shipbuilding industry suffering from overcapacity and shrinking orders amid a global shipping downturn.

09 Jul 2013

China's Largest Shipbuilder Seeks Nation's Cities Aid

China Rongsheng Heavy Industries Group Holdings Ltd. (1101) is in talks with two coastal cities and government departments to secure financial assistance, as the nation’s shipowners association forecast a slump in vessel orders will run through next year, reports Bloomberg. The country’s largest shipyard outside state control is in discussions with Rugao and Nantong cities and some ministry-level departments related to the shipping industry, according to Bloomberg, citing Rongsheng spokesman William Li. The company said July 5 it was seeking financial assistance from the government after a plunge in orders forced it to reduce production and “restructure” its workforce.

10 Apr 2013

China Rongsheng Delivers Two More VLOCC's

Comparison Size Man & Ship:Photo Credit Wiki CCL Superfast1111

China Rongsheng Heavy Industries delivers the ninth and tenth 380,000-dwt class Very Large Ore Carriers (VLOCs). Christened Vale Jiangsu  and Vale Shinas, the two new Rongsheng-built 380,000 DWT class VLOCs have been delivered to Vale S.A. and Oman Shipping Company S.A.O.C. respectively. Rongsheng say that the vessels adopt an environmentally friendly design to achieve lower oil consumption and reduce the emission of CO2, while  operating efficiency exceeds that of most existing ore carriers.

27 Mar 2013

China Rongsheng Report 2012 Revenue Cut by Half

China Rongsheng Heavy Industries release financial results for the twelve months ended 31, December 2012. In 2012, the Group recorded approximately RMB 7.96 billion in revenue, a year-over-year decrease of 50% from RMB 15.9 billion. Losses attributable to equity holders of the Company were RMB 572.6 million, compared to earnings of RMB 1.7 billion in 2011. Mr. “The sluggish global shipping market continued to reduce new shipbuilding prices and deteriorate payment terms, as global new shipbuilding orders plunged to their lowest level in a decade. "Shipbuilding is the Group’s core business and its major revenue contributor. During the Period, revenue from the shipbuilding segment reached RMB 7.56 billion, representing 95% of revenue.

14 Dec 2012

China Rongsheng Delivers First Container Ship

Rongsheng's First Container Ship: Photo credit Rongsheng

China Rongsheng Heavy Industries Group Holdings deliver their first container ship to a German owner. The new 6,500-TEU container ship measures 299.95 meters in length, 40 meters in breadth and 24.2 meters in depth. This latest delivery not only demonstrates a breakthrough of manufacturing capability at China Rongsheng Heavy Industries, but they say it also marked their comprehensive strengths in research and development and product diversity. Rongsheng believe that business upgrade and R&D capability are always development keys in the shipbuilding industry.

10 Dec 2012

China Rongsheng Deliver Seventh VLOC

Vale Brasil: Photo credit DNV

China Rongsheng Heavy Industries delivers a seventh 380,000 DWT class Very Large Ore Carrier (VLOC) to Vale. The new VLOC, christened Vale Shandong has been received by Vale S.A . As of 7 December 2012, China Rongsheng Heavy Industries has delivered a total of seven VLOCs, with one completed last year and six this year. On the same day, another VLOC built for Oman Shipping Company S.A.O.C. left for sea trials and will be received by the shipowner in the near future. Rongsheng-built VLOCs have an environmentally friendly design to lower oil consumption and reduce the emission of CO2…

27 Nov 2012

China Rongsheng Chairman Quits

Chairman of China's largest private shipbuilder, Zhang Zhirong, steps down from China Rongsheng Heavy Industries Group. Determined to put scandal behind it, China’s largest private shipbuilder, China Rongsheng Heavy Industries Group, has said its chairman has stepped down. to be replaced by the yard’s CEO, Chen Qiang, reports SinoShip News. Rongsheng was hit by an insider dealing scandal involving a firm owned by Zhang ahead of the $15.1bn bid for Canadian oil firm Nexen Inc by China offshore oil and gas producer CNOOC. Rongsheng’s profits have slumped this year amid a barren time for Chinese yards and shares of the Hong Kong-listed entity have dropped 30%. Source: SinoShip News

04 Oct 2012

China Shipbuilder Delivers Two VLOC's

VLOC Delivery Ceremony: Photo credit Rongsheng

China Rongsheng Heavy Industries delivers two 380,000 dwt Very Large Ore Carriers (VLOC) to Vale S.A. & Oman Shipping Co. Christened as “VALE HEBEI” and “VALE SOHAR”, the latter new-building passed all inspections and surveys after just one week of sea trials. Despite the ongoing challenges on the shipbuilding industry brought about by the global financial crisis and the European debt crisis, China Rongsheng Heavy Industries’ delivery plan has not been readily impacted, and so far this year Rongsheng has delivered five VLOC's, with another four already launched and being outfitted.

22 Aug 2012

Major Chinese Shipbuilder Sees Profits Nose-dive

China Rongsheng profit dives as new ship orders dry up. China Rongsheng Heavy Industries Group, the country's largest private shipbuilder, posted its sharpest fall in half-year profit - down 82 percent - on a dearth of new orders, putting further pressure on its stretched balance sheet reports Reuters. In a stubbornly downbeat global economy, the shipping industry has suffered widespread losses, with many small and medium sized Chinese builders close to bankruptcy as bankers cool on a sector struggling with a glut of vessels ordered during the boom times. The company said it won orders for just two new vessels with a total contract value of $55.6 million. In the first half of last year it won orders for 24 vessels worth $1.08 billion. Source: Reuters

31 Jul 2012

Chinese Shipbuilder's Shares Tumble

China's Rongsheng Heavy Industries' shares tumbled after US Securities & Exchange Commission accusation Shares of China Rongsheng Heavy Industries tumbled 17 percent to a record low yesterday after its chairman Zhang Zhirong was accused of insider trading by the US Securities and Exchange Commission, reports the 'Hong Kong Standard'. The SEC accused Hong Kong-based Well Advantage - solely owned by Zhang - of trading illegally before an announcement by CNOOC (0883) that it would buy Nexen for US$15.1-billion (HK$117.78-billion). In related news Rongsheng said it expects net profits in the first half to have fallen sharply due to a declining industry. Analysts expect whole-year profits to slide by 25-30 percent from 2011.

22 May 2012

China Rongsheng Names, Delivers 380,000 dwt VLOC's

Vale VLOC: Photo credit Vale S.A.

China Rongsheng Heavy Industries christened the first of two 380,000 DWT Very Large Ore Carriers built for Oman Shipping deliivers another of the same to Vale S.A. China Rongsheng Heavy Industries Group Holdings Limited today christened the first two 380,000 DWT Very Large Ore Carriers (“VLOC”) built for Oman Shipping Company S.A.O.C. (“Oman Shipping”). The vessels will set for sea trial and enter into the final delivery stage soon. In addition, the Group has also delivered the third 380,000 DWT VLOC to iron ore mining giant, Vale S.A. H.E. Dr.

16 May 2012

China's First Deepwater LNG Pipe-Layer Sets Sail

Photo credit China Rongsheng

The vessel has set sail for the “Liwan 3-1” gas field in the South China Sea today and will prepare for pipe laying works. “HAI YANG SHI YOU 201” not only deploys world-leading offshore engineering technology, but also marks the first self-design and self-build deepwater offshore engineering vessel project in China, advancing the nation’s deepwater resources exploration strategy. As the flagship of CNOOC’s deepwater exploration fleet, “HAI YANG SHI YOU 201” is planned to arrive at the “Liwan 3-1” gas field in June after departing from Qingdao.

30 Apr 2012

China Rongsheng & DNV Sign Agreement

Rongsheng DNV Ceremony: Photo credit RHI

China Rongsheng Heavy Industries has signed a classification agreement for ten157,000 DWT suezmaxes and a senior management conference was also held in conjunction with this agreement. China Rongsheng and DNV have had a strategic partnership for some years. The newly-signed classification agreement for the ten 157,000 DWT suezmaxes not only strengthens the partnership between the two parties, but also demonstrates the regard of world-class classification societies for  China Rongsheng’s products, say Rongsheng.

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