rongsheng shipyard location 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
RUGAO, China—An anxious shipyard worker named Li and the deserted shops around him offer a glimpse of the tough choices that many of China"s most bloated industries present to Beijing.
The 46-year-old Mr. Li, who gave only his surname, said he works for China Rongsheng Heavy Industries Group Holdings Ltd. The company Friday said it is struggling to pay employees and suppliers and is in talks with its bankers for more credit. Rongsheng also is seeking financial help from the government and shareholders amid a prolonged industry slump.
[Press Release]CHINARONGSHENGHEAVYINDUSTRIES 400,000 DWT VLOCNAMED AND LAUNCHED* * * *LOWERSCOST FORVALE ANDFORGESLONG-TERMCOOPERATIONFIRSTVLOCS TOBEDELIVERED SOON
(10 July 2011, Hong Kong) China Rongsheng Heavy Industries Group Holdings Limited (China Rongsheng Heavy Industries or the Group; stock code: 01101.HK), a large heavy industries group in China, and Vale S.A. (Vale), the largest global iron ore supplier from Brazil, held a naming and launching ceremony on 9 July for the first-ever 400,000 DWT Very Large Ore Carrier (VLOC) built in China. This new VLOC, named VALE CHINA, is the first VLOC of a few to be delivered in the coming two years. The new vessel can significantly lower overall delivery costs of iron ore for Vale. The attendance of Vales new Chief Executive Officer underscored the long-term cooperation between a major shipbuilder and ship owner.
Mr. Chen Qiang, Chief Executive Officer of China Rongsheng Heavy Industries, and Mr. Murilo Ferreira, the new Chief Executive Officer of Vale, attended the ceremony. The Brazilian ambassadress was the godmother in the naming ceremony. Mr. Chen Qiang said, The early christening of VLOC as VALE CHINA reflected the dedication and importance of the cooperation of both parties, as well as Vales strong interest in collaborating with Chinese companies.
As the largest private shipbuilder in China, China Rongsheng Heavy Industries is one of the few shipbuilders in the world with the ability to build VLOCs of 400,000 DWT or larger. Within its shipbuilding segment, VLOCs account for the highest proportion of the contracts on hand in terms of contract value, thus the naming and launching of VALE CHINA has special significance for the Groups future development.
The 400,000 DWT VLOC launched is currently the worlds largest dry bulk carriers. It is a high-tech vessel self-developed by the Group, representing the worlds most advanced technology in very large bulk carriers. The vessels main engine was self-built by China Rongsheng Heavy Industries, which is a low-speed diesel engine with the maximum power manufactured by Chinese enterprise independently so far.
As the largest iron ore supplier and exporter in the world, Vale is not only one of China"s major iron ore suppliers, but also the largest customer of China Rongsheng Heavy Industries. This visit fully affirmed the capability of China Rongsheng Heavy Industries in constructing very large vessel. Vale is seeking to enhance production capacity to meet the increasing demand from Asia. After the delivery of the 400,000
10 July 2011 / Page 3Photo 1: Mr. Chen Qiang, Chief Executive Officer of China Rongsheng HeavyIndustries, giving a speech in the naming and launching ceremonyPhoto 2: The naming and launching ceremony ofChinas first-ever 400,000 DWT VLOC VALE CHINA
Established in 2005, China Rongsheng Heavy Industries advanced to become a market leader in the Chinese shipbuilding industry within five years. According to Clarkson Research, China Rongsheng Heavy Industries was the second largest shipbuilder and the largest privately-owned shipbuilder in the PRC in terms of total order book measured by DWT as of end of 2010, and had the largest shipyard in the PRC. China Rongsheng Heavy Industries was also a global leader in manufacture of VLOCs of over 400,000 DWT. Headquartered in Hong Kong and Shanghai, China Rongsheng Heavy Industries has production facilities in Nantong of Jiangsu Province and Hefei of Anhui Province. Currently, China Rongsheng Heavy Industries business spans four segments: shipbuilding, offshore engineering, marine engine building and engineering machinery. Rongsheng products include bulk carriers, crude oil tankers, containerships, offshore engineering products, low-speed marine diesel engines and small to mid-size excavators for construction and mining uses. It has established strategic cooperations with renowned international classification societies including DNV, ABS, LR, GL and CCS, and has built a customer base including enterprises such as CNOOC, Vale, Geden Line, Cardiff Marine Inc., MSFL and Frontline Ltd. The Groups products have been sold to 11 countries and regions including Turkey, Norway, Germany, Brazil, Singapore and China.For press enquiries:China Rongsheng Heavy Industries Group Holdings Limited
The Ceremony was held at the shipyard of China Rongsheng Heavy Industries Group Holdings Limited (01101.HK), the builder of this vessel. Choosing China Rongsheng as the first destination of his first China visit, the new CEO and Vale demonstrated a strong faith in a long term cooperation between the two groups. This new VLOC is the first VLOC of a few to be delivered in the coming two years.
The ceremony was held at the Nantong production base of China Rongsheng Heavy Industries, right beside the dock. The new vessel was named as “VALE CHINA”. Present at the ceremony were Mr. Murilo Ferreira, newly appointed Vale CEO, Mr Hugueney and Mrs Hugueney, the Brazilian ambassador and his wife, Mr Zhang Jisheng, the deputy general secretary of Jiangsu Province, Mr Chen Qiang, CEO of China Rongsheng and top executives from Rugao Government.
In 2008, China Rongsheng Heavy Industries signed shipbuilding contracts for twelve 400,000 DWT VLOCs with Vale, with a contract value of US$1.6 billion. The work under the contracts set three world records in carrying dead weight tonnage of single bulk carriers, total dead weight tonnage of orders and total contract value. The Group currently has orders for 16 VLOCs on hand and with the other four placed byOman Shipping Company.
The visit of Mr. Murilo Ferreira shows Vale’s great trust in China Rongsheng, a positive foundation for future cooperation between Vale and Rongsheng. In the first half of 2011, China Rongsheng excelled it peers in the gloomy shipbuilding market by obtaining a series of shipbuilding contract, including a large order of ten 205,000DWT bulk carriers. Ship owners showed their support and trust to China Rongsheng and the new orders further enhanced China Rongsheng’s leading position in bulk carrier building market.
China Rongsheng is a leading large-scale heavy industry enterprise group. It possesses of two manufacturing bases of shipbuilding and offshore engineering in Nantong of Jiangsu Province and diesel engine in Hefei of Anhui Province both approved by NDRC, covering wide services ranging from shipbuilding, offshore engineering, power engineering, engineering machinery and etc. Until Dec.With the vision of “cultivate world first-class employees and create world first-class enterprise”, the spirit of “integrity-based, the pursuit of excellence”, and the responsibility of revitalizing national industry, it runs fast toward the great goal of world first-class diversified heavy industry group.
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