rongsheng shipyard map supplier

The shipyard, located in the Yangtze River Delta, was founded in 2006, and became the largest private shipbuilder in China, churning out giant valemaxes at its four large dry-docks, before a massive financial collapse forced it to cease operations in 2014.

Broking sources in China tell Splash that the yard’s former chief operating officer David Luan is now preparing to officially reopen the yard, to be known as SPS Shipyard, a reference to ShipParts.com, a business he created in 2015 after quitting Rongsheng.

SPS Shipyard will start to market cape and kamsarmax slots from next week with next available slots being from Q3 2025 onwards. Luan has yet to reply to questions sent by Splash earlier today.

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.

Rongsheng Heavy Industries have admitted that it has delayed payments to suppliers and workers through an official announcement today, in response to a worker protest in its shipyard earlier this week.

“Demand in the global shipbuilding market has continued to decline and prices for new vessels have failed to rebound. Throughout the shipbuilding industry, banks and other financial institutions have tightened credit facilities available to shipbuilders, and many shipowners have delayed, renegotiated or defaulted on payments to shipbuilders. These factors have caused higher pressure on the group’s working capital in recent months, and the group has tightened cash outflow by delaying its payment to its suppliers and workers,” Rongsheng said in the release.

Rongsheng said it is currently in discussions with a number of banks and financial instituations for renewing exisiting credit facilities while it is also actively seeking financial support from the government and the substantial shareholders of the company.

China Rongsheng Heavy Industries Group Holdings Ltd. (1101), which hasn’t announced any 2012 ship orders, may find winning deals even harder as a company owned by its billionaire chairman faces an insider-trading probe. Bloomberg reports. Rongsheng, based in Shanghai, has tumbled 86 percent since a November 2010 initial public offering because of concerns about delivery delays and a global slump in ship orders caused by a glut of vessels. The shipbuilder, which operates facilities in Jiangsu and Anhui provinces, also said yesterday that first- half profit probably dropped “significantly” because of falling prices and slowing orders. http://www.businessweek.com/news/2012-07-30/rongsheng-faces-order-slump-as-sec-probes-chairman-s-companyUpload News

Rongsheng Heavy Industries Group Holdings Limited is pleased to announce the establishment of Rongsheng Offshore & Marine Private Limited (“Rongsheng Offshore & Marine”), the Group’s new offshore engineering base, in Singapore. The company will focus on research and development, marketing and “Engineering, Procurement and Construction” (“EPC”) projects in offshore engineering, drawing on Singapore’s superior industry advances and human resources. On the same day, Rongsheng Offshore & Marine also officially announces that it has secured an EPC contract for a 2,000-meter deepwater tender barge. With sound developments made in the high-end offshore equipment manufacturing field, the Group will seek to accelerate its all-round transformation into an offshore engineering service provider.

Rongsheng Offshore & Marine, a wholly-owned subsidiary of China Rongsheng Heavy Industries and registered in Singapore, is set to become a light asset, high technology and first class offshore engineering talent base. It will play an important role in the Group’s offshore engineering strategy; the sales team is positioned to help the Group to gain market share in the international offshore engineering market, and the operational team will help the Group to achieve greater breakthroughs by engaging in high-end operational activities such as research and development, EPC project management and international procurement.

Mr. Chen Qiang, Executive Director and Chief Executive Officer of China Rongsheng Heavy Industries, said: “The opening of Rongsheng Offshore & Marine marks an important milestone towards the Group’s goal to upgrade and transform into an offshore engineering service provider. Combined with the company’s new, innovative operating model and technological platform and Jiangsu Rongsheng Heavy Industries Company Limited’s (“Jiangsu Rongsheng”) strong manufacturing base, China Rongsheng Heavy Industries has gained access to the global market and can now make their presence felt in the high-end marine equipment manufacturing field. By improving efficiency and lowering cost through synergizing the Group’s various business areas, we are confident that we can build Rongsheng into a world-class offshore engineering brand.”

The project in question is an EPC project, covering Engineering, Procurement, Construction. Rongsheng Offshore & Marine is the general contractor, and Jiangsu Rongsheng is the manufacturer. China Rongsheng Heavy Industries is one of the few shipbuilders in China capable of undertaking an EPC project, and the winning of this tender highlights the technological and manufacturing strength of China Rongsheng Heavy Industries in the marine engineering field. It also demonstrates the recognition received by the Group in the international shipbuilding and offshore engineering industries.

Mr. Don Lee, Director and Chief Executive Officer of Rongsheng Offshore & Marine, has made great achievements in offshore engineering and commands a considerable reputation, having established extensive contacts and close cooperation with offshore rig owners and petroleum companies over the course of 40 years in the field. Prior to his appointment at Rongsheng, Mr. Lee served as an Senior General Manager at Sembcorp Marine’s subsidiary Jurong Shipyard, Senior Vice President of the Marketing of Sembcorp Marine,Director of Jurong Brazil, Director of Brazil Netherlands BV, and Director of PPL Shipyard.

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.