Jiangsu shipyard in $40m project
THE Jiangyang Shipbuilding Group in Yangzhou is carrying out a 30-million yuan (about HK$40.2 million) expansion project to allow it to build freighters of more than 10,000 tonnes.
According to a China Daily report, the construction of a new shipyard, a dock and a precision machinery workshop would place the Jiangsu province facility it among the country's 10 major shipbuilders.
Although it is the largest in the province, the company now is restricted to vessels under 7,000 tonnes.
Most of the about 20 ships built by the company last year were coastal freighters and ferry boats between 3,000 and 6,000 tonnes.
The company based its expansion on the belief that China's shipbuilding industry is in rapid growth as rich countries place orders in developing countries.
China now builds only 2.7 per cent of the world's new ocean vessels.
The Jiangyang Shipbuilding Group was formed in 1990 through the merger of several small, unprofitable yards, two vehicle refitting works, a crane factory, a ship-design institute and a ship-engineering school.
The pooled resources greatly boosted the enterprise's productivity. Last year the corporation achieved sales of 150 million yuan and exported ships worth US$3 million.
This year's sales target is 250 million yuan, including $6 million in exports. The corporation also has received an overseas order for a 7,000-tonne container ship.
Apart from building utility ships, the company also runs a highly profitable ship-scrapping business which will yield more than 40 million yuan in profits this year.