CHINA's shipbuilding capacity and output will reach four million deadweight tonnes (dwt) and 2.5 million dwt respectively, by the end of the century. According to a report in Business Times quoting Wang Rongsheng, general manager of the Shipbuilding Industry Corporation, design and management will be modernised, Xinhua (the New China News Agency) reported. China's shipbuilding industry has been expanding rapidly since the 1980s when it first entered the international market. The corporation is able to produce more than two million dwt of ships a year, up from 700,000 dwt in the past, and its output of diesel engines has risen from 200,000 kw to 600,000 kw. The corporation has contracted to build ships of various kinds for more than 30 countries, including Germany, the US, Norway, Denmark, Belgium, Thailand, Bangladesh, Pakistan and Chile. By the end of last year the corporation had contacted to build five million dwt of ships. So far, China has developed or improved more than 500 types of ships, 60 per cent of which were bought by foreign companies. In a related development, Zhoushan port in Zhejiang province will become China's largest shipbreaking base, the China Communications newspaper reported. Situated at the mouth of the Yangtze river on the East China Sea, Zhoushan harbour has broad offshore sea areas and beaches, as well as deep waterways. The base is being funded by the China Shipbreaking Corp., the Zhejiang Shipbreaking Corp. and Zhoushan Shipbuilding Corp., with a total investment of 240 million yuan (about HK$216 million) during the first-phase construction project, which will be completed in two years. In all, 10 berths will be built to dismantle low-tonnage ships and large oil tankers, together with a steel rolling mill nearby to process steel plates dismantled from old ships. Experts estimate that in the mid-1990s, there will emerge another peak for the global shipbreaking industry.