GUANGZHOU Shipyard International wants to establish a build and repair plant at the Pearl River estuary for large vessels under China's ninth five-year plan through the next five years.
Chairman Ren Fuwei said the new plant would enable the company to build and repair ships of more than 200,000 dwt (dead weight tonnes), compared with its existing capacity of only 40,000 dwt at the shipyards in Guangzhou because of geographical restrictions.
'Shipbuilding and ship repairing are our strengths, and the repairing business usually has a generous gross profit margin of more than 30 per cent,' he said.
Mr Ren, who has just relinquished the position as general manager, declined to say how much the project would cost.
He said the plan was subject to approvals from its parent China State Shipbuilding Corp and the State Planning Commission.
Guangzhou Shipyard is conducting a feasibility study which is expected to be completed at the year's end.
