rongsheng reddit price

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.

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.

Two Chinese newcomers make the ranking: TongKun Group at 48 and Hengyi Petrochemical at 50. Both are polyester producers that make their own raw materials. Hengyi also has a large, integrated nylon 6 business. Both companies join similar Chinese firms, like Hengli Petrochemical and Rongsheng Petrochemical. All these companies have been building massive complexes for aromatics and derivatives, in many cases swamping entire segments of the chemical industry—such as purified terephthalic acid—with new capacity that is well beyond the scale of players outside China.

A Rongsheng Petrochemical subsidiary, Zhejiang Petroleum & Chemical, started up the second phase of its massive refining and petrochemical complex in Zhejiang, China, in 2021. With capacity now doubled, the facility can process 40 million metric tons (t) of oil per year. The facility has a large petrochemical output: up to 6.6 million t of aromatics and 1.4 million t of ethylene per year. The expansion allowed the company to start making specialized polymers, such as acrylonitrile-butadiene-styrene and polycarbonate.

Later, the first discussions about the joint Saudi-China refining and petrochemical complex in China’s northeast began, with a bonus for Saudi Arabia being that Aramco was intended to supply up to 70 percent of the crude feedstock for the complex that was to have commenced operation in 2024. This, in turn, was part of a multiple-deal series that also included three preliminary agreements to invest in Zhejiang province in eastern China. The first agreement was signed to acquire a 9 percent stake in the greenfield Zhejiang Petrochemical project, the second was a crude oil supply deal signed with Rongsheng Petrochemical, Juhua Group, and Tongkun Group, and the third was with Zhejiang Energy to build a large-scale retail fuel network over five years in Zhejiang province.

Bloomberg quoted another industry executive as saying that the economic decline that gripped China earlier this year amid the lockdowns is now over and refining rates are on the rise. Gasoline consumption has also picked up and will lead the rebound in fuel demand, Chen Hongbing, deputy general manager at Rongsheng Petrochemical said at the industry event.

With physical trading this month mostly concluded for January-loading cargoes, spot premiums for key Persian Gulf grades have declined sharply. While China’s Rongsheng Petrochemical Co. did purchase about 7 million barrels mid-month, that wasn’t enough to lift the sentiment, traders of those grades said.

Zhang is also the largest shareholder of China Rongsheng, China"s biggest private shipbuilder. The 45-year-old ranks as the 79th-richest man in China, with a fortune of $1.6 billion, and 736th-richest in the world, according to Forbes. But his wealth has taken a battering in the last year as China Rongsheng struggled - Zhang ranked 48th in China last year.

Zhang stepped down as chairman of both Glorious Property and China Rongsheng in October 2012, after a company he controls, Well Advantage Ltd., paid $14.2 million to settle a U.S. insider trading case involving Chinese oil company CNOOC"s buyout of the Canadian energy company Nexen.

According to Xin Sun, director at Shenghong Petrochemical International, China’s economic slump is over and government stimulus has helped boost consumer confidence. Oil processing rates are improving and strong gasoline consumption will lead the recovery in demand for transportation fuels, said Chen Hongbing, deputy general manager of Rongsheng Petrochemical.

That may be changing after Beijing pledged to cut credit to industries plagued with overcapacity, and China Rongsheng Heavy Industries Group, the country"s largest private shipbuilder, fell into financial trouble.

A number of Chinese shipyards have tried their hand at offshore equipment manufacturing as their traditional shipbuilding businesses have slowed, and are on their way to win more orders for jackup rigs than Singapore"s yards for a second year in a row. Rongsheng mainly builds dry bulk carriers and only set up its offshore rig arm in 2012.

Rongsheng could now become the biggest casualty of a local shipbuilding industry suffering from overcapacity and shrinking orders amid a global shipping downturn. New ship orders for Chinese builders fell by about half last year.

Within hours of Rongsheng"s appeal for help from the Chinese government, Beijing this month vowed to harness its financial sector to help bring about an orderly closure of some factories in industries plagued by overcapacity.