rongsheng shipyard map for sale

Last October, the company entered into an agreementto sell 98.5% equity interest of Rongsheng Heavy Industries, the entire interest in Rongsheng Engineering Machinery, Rongsheng Power Machinery and Rongsheng Marine Engineering Petroleum Services, to Unique Orient, an investment holding company owned by Wang Mingqing, a creditor of Huarong Energy, for a nominal price of HK$1.

Once the largest private shipyard in China, Rongsheng ceased shipbuilding operations in 2014 after it was hit by a major financial crisis and the shipyard rebranded into Huarong Energy in 2015.

Beijing has made its naval forces the cornerstone of its military modernization. China is actively pursuing the role of a global military power able to project its force to any corner of the earth, and the US may not have the sheer industrial capacity to compete. "It is easier for China to increase its fleet numbers as it is the world"s biggest shipbuilder. They have immense shipyard capacities, which the US lacks, as its commercial shipbuilding has been thrown into disarray over the past decades," says Vasily Kashin, Far East researcher at the Russian Academy of Sciences.

The 2016 Annual Report to Congress: Military and Security Developments Involving the People�s Republic of China reported that "Shipyard expansion and modernization has increased China�s shipbuilding capacity and capability for all types of military projects, including submarines, surface combatants, naval aviation, and sealift assets. China�s two largest state-owned shipbuilders�the China State Shipbuilding Corporation and the China Shipbuilding Industry Corporation�collaborate in shared ship designs and construction information to increase shipbuilding efficiency. China continues to invest in foreign suppliers for some propulsion units, but is becoming increasingly self-sufficient. China is the top ship-producing nation in the world... "

China is the leading shipbuilding country in the world. As of the end October 2010, China"s production completion of shipbuilding was 50.90 million deadweight tons (dwt), an increase of 58.4%, and new orders of the industry were 54.62 million dwt or 2.9 times that of the same period last year, respectively. China�s �White List� of shipbuilders, first released in September 2014 as a guide to the yards which the Chinese government wished to support, listed 71 builders which together delivered 90% of Chinese output. The first "white list" included 51 shipyards that it deems worthy of favourable policy support.

The State-Owned Shipbuilders include two main group: CSSC & CSIC. These two Groups are both large and under supervision of the State Council. There are also other group such as CSC group, AVIC group and etc� The Private Shipbuilders include some big shipbuilders which are listed in the stock exchange such as Yangzijiang Shipbuilding Group, RongSheng Heavy Industry and some others such as New Times, MingDe, HanTong and etc�

China overtakes Korea as the world"s top shipbuilder in the first half of 2010 and kept ahead in terms of three major industry indicators, including new orders, order backlogs and delivery. China�s shipbuilding industry is expected to be left with a handful of 30 shipbuilding enterprises with demand for yard facilities not exceeding 60m dwt by end-2015. At its peak, China�s shipbuilding sector witnessed more than 3,000 shipyards at the start of 2010, leading to a severe yard capacity glut and sending thousands of yards out of business as newbuilding orders plunged.

As at end-2015, China�s total shipyard capacity was estimated at 65m dwt, down from around 80m dwt in 2012. But the current capacity is still too excessive, and China�s shipbuilding industry needs to �slim down� further by removing another 30% or more of capacity. The 30% reduction in yard capacity from 65m dwt would translate to around 19.5m dwt. Since 2015, more than 20 large to medium sized Chinese shipbuilders had either declared bankrupt or stopped production altogether.

Wang Qi, director of Shanghai Waigaoqiao Shipbuilding (SWS), subsidiary of state-owned China State Shipbuilding Corp (CSSC), observed that China needed to prevent the emergence of speculative private yards, which he referred to them as �cancer cells� of the industry. �If the market starts to recover and you have this influx of speculative yards, they will throw the demand-supply equation off balance again,� Wang was reported saying. Ni Tao, deputy general manager of state-owned Cosco Shipyard Group, concurred that private yards can �open and close as they like�, unlike state-owned yards that carry national responsibility and are needed for any nation.

In October 2013 the State Council issued The Guidance on the Resolution of Seriously Excessive Capacity. The reform focused on the five industries with seriously excessive capacity such as the steel, cement, electrolytic aluminum, glass and shipbuildingindustries and the State Council designed the �road map� to resolve the problem of excess production capacity for the next five years. Brokerage researchers believed that with the implementation of the above guidance, the shipbuilding industry would usher into a profound adjustment, and a large number of companies with weak competitiveness and low value-added technology were expected to disappear. Theindustry agglomeration gradually increased. Meanwhile, the shipbuilding industry would develop into the marine engineering with high technology and high added value. Thus,China Shipbuilding Industry and other companies would clearly benefit.

The dual-use industrial base was a critical component of China"s strategic high-tech economic plans. Currently, its leading dual use sectors include shipbuilding, aviation, space, nuclear, electronics and IT infrastructures. The shipbuilding industry has made particular progress in modernizing its design and manufacturing capabilities and in transfering commercial shipbuilding practices to naval construction. Chinese shipbuilding was domestically and globally competitive, and seems to be profitable - indeed, it was the only sector in the defense industry that was adding productive capacity, i.e., new shipyards and more workers.

As Richard A. Bitzinger, Associate Professor, Asia-Pacific Center for Security Studies, has noted "Following an initial period of basically low-end commercial shipbuilding - such as bulk carriers and container ships - China"s shipyards have since the mid-1990s progressed toward more sophisticated ship design and construction work. In particular, moving into commercial shipbuilding began to bear considerable fruit beginning in the late 1990s, as Chinese shipyards modernized and expanded operations, building huge new dry-docks, acquiring heavy-lift cranes and computerized cutting and welding tools, and more than doubling their shipbuilding capacity. At the same time, Chinese shipbuilders entered into a number of technical cooperation agreements and joint ventures with shipbuilding firms in Japan, South Korea, Germany, and other countries, which gave them access to advanced ship designs and manufacturing technologies - in particular, computer-assisted design and manufacturing, modular construction techniques, advanced ship propulsion systems, and numerically controlled processing and testing equipment. As a result, military shipbuilding programs collocated at Chinese shipyards have been able to leverage these considerable infrastructure and software improvements when it comes to design, development, and construction."

Three types of firms make up China"s shipbuilding industry: 1) large state owned enterprises [SOEs] with mega-size production and technology capacity; 2) small private shipbuilding enterprises in the coastal provinces; and 3) joint ventures of foreign and domestic companies. Two mega parenting conglomerates dominate China"s shipbuilding industry. CSSC (China State Shipbuilding Corporation) which has headquaters in Shanghai, controls about 30 shipyards in the east and the south including those in Anhui, Guangdong, Jiangxi and Shanghai. CSIC (China Shipbuilding Industry Corporation) which is based in Beijing controls about 48 shipyards in the north and the west with a focus on major ports in Liaoning and Tianjin as well as operating 28 science, design and research units.

RUGAO, China/SINGAPORE (Reuters) - Deserted flats and boarded-up shops in the Yangtze river town of Changqingcun serve as a blunt reminder of the area"s reliance on China Rongsheng Heavy Industries Group, the country"s biggest private shipbuilder.A view of the Rongsheng Heavy Industries shipyard is seen in Nantong, Jiangsu province December 4, 2013. REUTERS/Aly Song

The shipbuilder this week predicted a substantial annual loss, just months after appealing to the government for financial help as it reeled from industry overcapacity and shrinking orders. Rongsheng lost an annual record 572.6 million yuan ($92 million) last year, and lost 1.3 billion yuan in the first half of this year.

While Beijing seems intent to promote a shift away from an investment-heavy model, with companies reliant on government cash injections, some analysts say Rongsheng is too big for China to let fail.

Local media reported in July that Rongsheng had laid off as many as 8,000 workers as demand slowed. Three years ago, the company had about 20,000 staff and contract employees. This week, the shipbuilder said an unspecified number of workers had been made redundant this year.

A purpose-built town near the shipyard’s main gate, with thousands of flats, supermarkets and restaurants, is largely deserted. Nine of every 10 shops are boarded up; the police station and hospital are locked.

“In this area we’re only really selling to workers from the shipyard. If they’re not here who do we sell to?” said one of the few remaining shopkeepers, surnamed Sui, playing a videogame at his work-wear store. “I know people with salaries held back and they can’t pay for things. I can’t continue if things stay the same.”

In the shadow of the shipyard gate, workers told Reuters the facility was still operating but morale was low, activity was slowing with the lack of new orders and some payments to workers had been delayed.

“Without new orders it’s hard to see how operations can continue,” said one worker wearing oil-spattered overalls and a Rongsheng hardhat, adding he was still waiting to be paid for September. He didn’t want to give his name as he feared he could lose his job.

“Morale in the office is quite low, since we don’t know what is the plan,” said a Rongsheng executive, who declined to be named as he is not authorized to speak to the media. “We have been getting orders but can’t seem to get construction loans from banks to build these projects.”

While Rongsheng has won just two orders this year, state-backed rival Shanghai Waigaoqiao Shipbuildinghas secured 50, according to shipbroker data. Singapore-listed Yangzijiang Shipbuildinghas won more than $1 billion in new orders and is moving into offshore jack-up rig construction, noted Jon Windham, head industrials analyst at Barclays in Hong Kong.

Frontline, a shipping company controlled by Norwegian business tycoon John Fredriksen, ordered two oil tankers from Rongsheng in 2010 for delivery earlier this year. It now expects to receive both of them in 2014, Frontline CEO Jens Martin Jensen told Reuters.

Greek shipowner DryShips Inchas also questioned whether other large tankers on order will be delivered. DryShips said Rongsheng is building 43 percent of the Suezmax vessels - tankers up to 200,000 deadweight tons - in the current global order book. That"s equivalent to 23 ships, according to Rongsheng data.

Speaking at a quarterly results briefing last month, DryShips Chief Financial Officer Ziad Nakhleh said Rongsheng was “a yard that, as we stated before, is facing difficulties and, as such, we believe there is a high probability they will not be delivered.” DryShips has four dry cargo vessels on order at the Chinese firm.

Rongsheng declined to comment on the Dryships order, citing client confidentiality. “For other orders on hand, our delivery plan is still ongoing,” a spokesman said.

At least two law firms in Shanghai and Singapore are acting for shipowners seeking compensation from Rongsheng for late or cancelled orders. “I’m now dealing with several cases against Rongsheng,” said Lawrence Chen, senior partner at law firm Wintell & Co in Shanghai.

Billionaire Zhang Zhirong, who founded Rongsheng in 2005 and is the shipyard"s biggest shareholder, last month announced plans to privatize Hong Kong-listed Glorious Property Holdingsin a HK$4.57 billion ($589.45 million) deal - a move analysts said could raise money to plug Rongsheng"s debts.

Meanwhile, Rongsheng’s shipyard woes have already pushed many people away from nearby centers, and others said they would have to go if things don’t pick up. Some said they hoped the local government might step in with financial support.

The Rugao government did not respond to requests for comment on whether it would lend financial or other support to Rongsheng. Annual reports show Rongsheng has received state subsidies in the past three years.

RME0XD15–Apr. 12, 1966 - San Juan Trader, 60,100 DWT, the world"s triple-purpose carrier, was launched last week at Tsurumi Shipyard of Nippon Kokan, Yokohama. Usually bulk carriers are not capable of hauling liquid cargoes, while ore or oil carriers are not suited for transporting cargoes such as grain and coal. But San Juan Trader transport dry cargo such as ore or its semi-finished products, bulk cargoes such as coal or grain and liquid cargoes. Her cargo capacity is 56,278.9 cubic metres for ore, 77,246.56 for bulk cargo and 85,170.6 for oil. Her length is 236.22 metres and her maximum speed of 17

RMCM6GJ0–BAE Systems Shipyard, Govan, Glasgow, Tuesday, 16th October, 2012. A completed hull section of the Aircraft Carrier HMS Queen Elizabeth loaded on to the barge AMT Trader on the River Clyde

RME0XY9J–Apr. 04, 1968 - World"s Largest Tanker Launched. A 276,000-DWT tanker, the largest in the world has been launched at the Yokohama Shipyard of Ishikawajima-Harima Heavy Industries, Co. Ltd., in Japan. The mammoth ship is 346-m. long and 53.3m. wide, and will be completed by the end of August this year for the Bantry Transportation Co. of Bermuda through the National Bulk Carriers Inc of U.S.A. who have ordered two more like her. The big tanker will carry oil from the Persian Gulf to a central terminal station to be constructed in Bantry Bay, south-west Ireland, and go via the Cape of Good Hope

RMCM6GJ2–BAE Systems Shipyard, Govan, Glasgow, Tuesday, 16th October, 2012. A completed hull section of the Aircraft Carrier HMS Queen Elizabeth loaded on to the barge AMT Trader on the River Clyde

RM2CWKEG9–Workers stand in front of a 380,000 DWT class Very Large Ore Carrier (VLOC) during the naming ceremony of two Valemax ships built by Rongsheng Heavy Industries in Nantong, Jiangsu province May 21, 2012. The global shipping market, battered for the past few years by a severe downturn, will likely improve from the second half of this year, said an executive with major shipbuilder China Rongsheng Heavy Industries Group Holdings on Monday. REUTERS/Aly Song (CHINA - Tags: MARITIME BUSINESS COMMODITIES)

RM2APPM94–MN [Merchant Navy]/Anefo London series Dutch merchant fleet. S.S. Phrontis Annotation: Repronegative. Built 1926 at the Caledon Shipyard, Dundee with the dimensions 136,85 x 16,66 x 8,87m, measured 6,181 GRT and 7,820 DWT. The 4,800 rhp allowed a speed of 13.5 knots. Call signs PQFR/PGSU. In 1958 sold to Djeddah and renamed and seemately renamed Ryad and the same year broken up at Hong Kong. She was owned by the Ned. Steam trip Me Ocean at Amsterdam. [source: warshipsresearch.web-log.nl/warships/2010/12/dutch-steam-ship-phrontis.html] Date: 1943 Location: Great Britain Keywords: merchant flee

RMCM6GHW–BAE Systems Shipyard, Govan, Glasgow, Tuesday, 16th October, 2012. A completed hull section of the Aircraft Carrier HMS Queen Elizabeth loaded on to the barge AMT Trader on the River Clyde

RM2CWXTEK–Workers stand in front of a 380,000 DWT class Very Large Ore Carrier (VLOC) during the naming ceremony of two Valemax ships built by Rongsheng Heavy Industries in Nantong, Jiangsu province May 21, 2012. The global shipping market, battered for the past few years by a severe downturn, will likely improve from the second half of this year, said an executive with major shipbuilder China Rongsheng Heavy Industries Group Holdings on Monday. REUTERS/Aly Song (CHINA - Tags: MARITIME BUSINESS COMMODITIES)

RME1331G–Feb. 26, 2012 - The world"s largest oil tanker.: The 372,400 - DWT tanker ""Nisseki Maru"",capable of carrying 450,000 kiloliters of crude oil, carries out a speed test off the coast of Kure, Japan before commencing her maiden voyage this week to the Persian Gulf to load. She is the biggest oil tanker in the World, 347-metres long, built for the Tokyo Tanker Co of the Nippon Oil Co group, by Ishikawajima Harima Heavy Industries at their Kure shipyard. She is expected to carry four million kiloliters of crude oil in nine trips a year from the Persian Gulf to Kagoshima, Japan for storage.

RMCM6GH9–BAE Systems Shipyard, Govan, Glasgow, Tuesday, 16th October, 2012. A completed hull section of the Aircraft Carrier HMS Queen Elizabeth loaded on to the barge AMT Trader on the River Clyde

RM2CXCXJB–VIP guests visit a 380,000 DWT class Very Large Ore Carrier (VLOC) during the naming ceremony of two Valemax ships built by Rongsheng Heavy Industries in Nantong, Jiangsu province May 21, 2012. The global shipping market, battered for the past few years by a severe downturn, will likely improve from the second half of this year, said an executive with major shipbuilder China Rongsheng Heavy Industries Group Holdings on Monday. REUTERS/Aly Song (CHINA - Tags: MARITIME BUSINESS COMMODITIES)

RMCM6GH7–BAE Systems Shipyard, Govan, Glasgow, Tuesday, 16th October, 2012. A completed hull section of the Aircraft Carrier HMS Queen Elizabeth loaded on to the barge AMT Trader on the River Clyde

RM2CY9JR2–Workers stand in front of a 380,000 DWT class Very Large Ore Carrier (VLOC) during the naming ceremony of two Valemax ships built by Rongsheng Heavy Industries in Nantong, Jiangsu province May 21, 2012. The global shipping market, battered for the past few years by a severe downturn, will likely improve from the second half of this year, said an executive with major shipbuilder China Rongsheng Heavy Industries Group Holdings on Monday. REUTERS/Aly Song (CHINA - Tags: MARITIME BUSINESS COMMODITIES)

RME1331H–Feb. 26, 2012 - World"s Largest Tanker Christened by Irish Premier"s Wife in Japan.: The world"s largest tanker, the 312,000 DWT ""Universe Ireland"", was christened today (Aug 15) by Mrs. John Lynch, wife of the Irish Premier currently visiting Japan with her husband. The christening ceremony took place at the Yokohama shipyard of Ishikawajima -Harima Heavy Industries. The big ship is the first of six super mammoth tankers for long term charter by Gulf Oil Co.. The ""Universe Ireland"" will transport 2