jiangsu rongsheng heavy industries co ltd price

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.

Huarong Energy is of the view that the shipbuilding and engineering business is unlikely to see a turnaround in the foreseeable future and it is in the best interests of the company to dispose of the business and focus its resources on energy.

Another once-leading privately-owned yard China Huarong Energy Company, previously and better known as China Rongsheng Heavy Industries, continues to struggle with debts and ongoing talks with its creditors. The shipbuilder with huge yard facilities is now literally a �ghost yard�, where operations have ceased as funds dried up.

Jiangsu Rongsheng Heavy Industries Group Co. used to employ more than 30,000 people in the eastern city of Rugao. Once China�s largest shipbuilder, by 2015 Rongsheng was on the verge of bankruptcy. Orders had dried up and banks are refusing credit. Questions have been raised about the shipyard�s business practices, including allegations of padded order books. And Rongsheng was apparently behind on repaying some of the 20.4 billion yuan in combined debt owed to 14 banks, three trusts and three leasing firms.

Rongsheng is on the ropes now that it had completed a multi-year order for so-called Valemax ships for the Brazilian iron ore mining giant Companhia Vale do Rio Doce. The last of these 16 bulk carriers, the Ore Ningbo, was delivered in January 2015. With a carrying capacity of up to 400,000 tons, Valemaxes are the world�s largest ore carriers. Vale hired Rongsheng to build the ships starting in 2008, and has tolerated the shipyard�s slow pace: The Ore Ningbo was delivered three years late. Rongsheng employees said the Ore Ningbo may have been the shipyard�s last product because no new ship orders are expected and all contracts for unfinished ships have either been canceled or are in jeopardy.

Founder and former chairman Zhang Zhirong started the company in 2005 with money made when he worked as a property developer in the 1990s. The new shipyard stunned the industry by clinching major vessel orders from the start, even at a time when most of the world�s shipyards were slumping. Rongsheng�s success attracted investors and banks to the company�s side, fueling its expansion.

The shipyard, a sprawling facility spread across one-third of Changqingsha Island in the middle of the Yangtze River, suffered from a lack of capacity and management problems. As a result, the company had trouble meeting its contract obligations, including delivery timetables. Rongsheng�s problems were tied to difficulties with delivering ships. Many of Rongsheng�s order cancellations were due to its own delivery delays.

After the global financial crisis of 2008, many ship owners could no longer afford paying in advance for new vessels. So builders such as Rongsheng started arranging up-front financing with Chinese banks that got projects off the ground.

Rongsheng built ships with a combined capacity of 8 million tons in 2010 and was preparing to begin filling US$ 3 billion in new orders the following year. But the company�s 2011 orders wound up totaling only US$ 1.8 billion. That same year, Rongsheng�s customers canceled contracts for 23 new vessels.

In 2012, Rongsheng received orders for only two ships. Layoffs ensued, with some 20,000 workers getting the axe. The company closed the year with a net loss of 573 million yuan, down from a 1.7 billion yuan net profit in 2011 and despite 1.27 billion yuan in government subsidies. The bleeding worsened in 2013, with 8.7 billion yuan in reported losses. Despite a recovery of the Chinese shipbuilding industry in 2014, Rongsheng saw no relief, as its clients canceled orders for 59 vessels that year.

Roxen Shipping, a company controlled by Chinese businessman Guan Xiong, reportedly stepped in to rescue some US$ 2 billion worth of ship contracts that were canceled by Rongsheng�s other customers. Without these orders, Rongsheng never would have maintained its status as the No. 1 shipbuilder in China from 2009 to 2013.

Rongsheng�s capital crunch worsened since February 2014, when the China Development Bank (CDB) demanded more collateral after the company failed to make a scheduled payment on a 710 million yuan loan. When Rongsheng refused, the CDB called the loan. Other banks that issued loans to the shipbuilder had taken similar steps.

Rongsheng�s weak financial position was highlighted by a third-quarter 2014 financial report in which the company posted a net loss of 2.4 billion yuan. It also reported 31.3 billion yuan in liabilities, including 7.6 billion yuan worth of outstanding short-term debt.

It would cost at least 5 billion yuan to restart operations at Rongsheng�s facility, plus they have a huge amount of debt. Buying Rongsheng would not be a good deal.

Brazil sank a decommissioned aircraft carrier in the Atlantic Ocean off its northeast coast, the Brazilian Navy said, despite warnings from environmentalists that the rusting 1960s French-built ship would pollute the sea and the marine food chain.The 32,000-tonne carrier had been floating offshore for three months since Turkey refused it entry to be scrapped there because it was an environmental hazard and the ship was towed back to Brazil.The carrier was scuttled in a "planned and controlled sinking" late on Friday, the Navy said in a statement, that would "avoid logistical, operational, environmental and economic losses to the Brazilian state," it said.

Finnish cargo handling machinery manufacturer Cargotec on Monday announced its board of directors has appointed Casimir Lindholm to succeed Mika Vehviläinen as the company"s president and CEO, effective April 1, 2023.A member of Cargotec"s board since 2021, Lindholm has held CEO positions both in Eltel and Lemminkäinen and many board memberships.“I’m honored and excited to be leading Cargotec at such a pivotal moment in the company’s history, with a strong foundation and a clear vision into its next development phase of growth as we have communicated before.

The Baltic Exchange"s main sea freight index, tracking rates for ships carrying dry bulk commodities, fell to the lowest in nearly three years, pressured by weaker rates across vessel segments.The overall index, which factors in rates for capesize, panamax and supramax shipping vessels carrying dry bulk commodities, fell 13 points, or about 2.1%, to 608, its lowest since early-June 2020.The capesize index lost 10 points, or about 2.3%, to over a five-month low of 419.Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, were down $86 at $3,475.

ABB has unveiled its Baldor-Reliance HydroCool XT motor product line, a new generation of water-cooled motors for extreme marine duty and other applications.According to the manufacturer, HydroCool XT is quiet and versatile, and offers reduced maintenance and high performance in some of the toughest environments. Water-jacket cooling offers higher thermal conductivity than air cooling, helping to extend the motor life while eliminating the need for fans or air filters. Available with induction or permanent magnet rotor technology, the motor can achieve the highest level (IE5) efficiency rating for energy savings

The Italian trade union USB filed a legal complaint against a plan by gas grid operator Snam to set up a new liquefied natural gas (LNG) terminal in the Tuscan port of Piombino, it said in a press release on Friday.USB alleged Snam had committed serious "environmental crimes" while performing works to build the terminal.USB criticised in the statement the choice to set up the terminal in an area already polluted by an old steel plant, saying regasification processes would increase pollution levels even further and cause "serious and irreparable injuries."Snam declined to comment on the issue.

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

This announcement is issued by China Rongsheng Heavy Industries Group Holdings Limited (the "Company") in accordance with Rules 13.09 and 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

Reference is made to the announcement of the Company dated 21 March 2012 in respect of the issue of medium-term notes by its subsidiary, Jiangsu Rongsheng Heavy Industries Co., Ltd. (江 蘇熔盛重工有限公司) ("Jiangsu Rongsheng Heavy Industries"), in the People"s Republic of

Pursuant to the relevant rules and regulations in the PRC, the unaudited financial information (the "Unaudited Quarterly Financial Information") of Jiangsu Rongsheng Heavy Industries, which is indirectly owned by the Company as to approximately 96.38%, and its subsidiaries for the nine months ended 30 September 2014 was published on http://www.chinabond.com.cn/www.chinabond.com.cn and www.chinamoney.com.cn on 17 October 2014.

Set out below are the key unaudited financial figures of Jiangsu Rongsheng Heavy Industries and its subsidiaries for the nine months ended 30 September 2014 as included in the Unaudited Quarterly Financial Information, which have been prepared in accordance with the PRC Generally Accepted Accounting Principles and have not been audited:

of www.chinabond.com.cn and www.chinamoney.com.cn to provide further information with respect to its unaudited financial information for the nine months ended 30 September 2014, the key contents of which is set out below in this announcement.

For the nine months ended 30 September 2014, Jiangsu Rongsheng Heavy Industries and its subsidiaries recorded an operating loss and a total loss of approximately RMB2,778.6 million and RMB3,362.2 million respectively, and a net loss of approximately RMB3,362.2 million

The net loss incurred for the nine months ended 30 September 2014 was primarily due to the low prices of shipbuilding orders in depressed market conditions and the diminishing profitability of the conventional shipbuilding business. The net loss was also due to the decline of production activities of Jiangsu Rongsheng Heavy Industries despite considerable fixed production cost and the adjustment of the contract price of certain shipbuilding contracts. Such loss may lead to adverse effects on the production and operation, financial position and repayment capacity of Jiangsu Rongsheng Heavy Industries. Jiangsu Rongsheng Heavy Industries has been proactively adopting measures to improve operational performance and financial position, and to mitigate liquidity pressure. These measures include but are not limited to: actively negotiating with principal banks in the PRC on the terms and conditions of the extension and renewal of borrowings; obtaining financial support from a shareholder of its holding company; negotiating for better payment terms and revising up prices of certain existing shipbuilding orders; redesigning operation flow and controlling costs for existing shipbuilding orders; maximizing sales efforts and obtaining the appropriate project-based financing; establishing strategic cooperation with key suppliers with a view to reduce the costs of supplies.

The Unaudited Quarterly Financial Information and the key unaudited financial figures disclosed in this announcement have been prepared in accordance with the PRC Generally Accepted Accounting Principles and have not been audited. Shareholders and potential investors are cautioned not to unduly rely on such information, and should exercise caution when dealing in the shares of the Company.

(Bloomberg) — China Rongsheng Heavy Industries Group Holdings Ltd., 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.

China’s biggest shipbuilder outside state control tumbled 16 percent yesterday in Hong Kong after the U.S. Securities and Exchange Commission said traders including Chairman Zhang Zhi Rong’s Well Advantage Ltd. made more than $13 million of illegal profits buying shares of Nexen Inc. ahead of a takeover announcement by CNOOC Ltd. The SEC also won a court order freezing about $38 million of the traders’ assets.

The investigation may deter customers from placing orders, Jon Windham, an analyst at Barclays Plc., said yesterday by phone. “It’s obviously very bad for the overall image of the company.” He downgraded the stock to underweight from equalweight and cut its target price to HK$1.06 from HK$2.40.

Rongsheng, based in Shanghai, has tumbled 87 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.

The demand slump has pushed new-ship prices to an eight- year low, according to shipbroker Clarkson Plc. Chinese shipyard orders plunged 49 percent in the first half.

The probe won’t affect day-to-day operations run by Chief Executive Officer Chen Qiang, as Chairman Zhang only has a non- executive role, Rongsheng said in a statement yesterday. Zhang wasn’t available for comment yesterday, according to Doris Chung, public relations manager at Glorious Property Holdings Ltd., a developer he controls.

Chen isn’t aware of Zhang’s personal business dealings and he has no plans to leave Rongsheng, he said yesterday by text message in reply to Bloomberg News questions. The CEO may help reassure potential customers as he is well-known among shipowners, said Lawrence Li, an analyst at UOB Kay Hian Holdings Ltd.

Zhang owns 46 percent of Rongsheng and 64 percent of Glorious Property, according to data compiled by Bloomberg. The developer dropped 1.7 percent to close at HK$1.16 in Hong Kong today after falling 11 percent yesterday. Zhang’s listed holdings are worth about $1.2 billion, according to data compiled by Bloomberg.

Zhang, who holds a Master’s of Business Administration degree from Asia Macau International Open University, started in building materials and construction subcontracting before getting into real estate. Construction of his first project, in Shanghai, began in 1996, according to Glorious Property’s IPO prospectus. He got into shipbuilding after discussing the idea with Chen at a Shanghai Young Entrepreneurs’ Association event in 2001, according to Rongsheng’s sale document. He formed the company that grew into Rongsheng three years later.

“People in his hometown think Zhang is a legend as he expanded two companies in different sectors so quickly,” said Ji Fenghua, chairman of Nantong Mingde Group, a shipyard located next to Rongsheng’s facility in Nantong city, Jiangsu province. The billionaire maintains a low profile, said Ji, who has never seen him at meetings organized by the local government.

Rongsheng raised HK$14 billion in its 2010 IPO, selling shares at HK$8 each. The company’s market value has fallen by about $6.1 billion to $1 billion, based on data compiled by Bloomberg.

The shipbuilder has had delays as it builds 16 of the world’s biggest commodity ships for Vale SA and Oman Shipping Co. It was supposed to hand over eight of the ships last year, according to its IPO prospectus. Instead, it only delivered one. It had handed over two more to Vale by May 20. The same month, it christened two for Oman Shipping, Xinhua reported.

The company’s cash reserves have also declined. It had 6.3 billion yuan of cash and cash equivalents at the end of December down from 10.4 billion yuan a year earlier. Its short-term borrowings rose to 18.2 billion yuan from 10.1 billion yuan, according to data compiled by Bloomberg.

Rongsheng, which also makes engines and excavators, had outstanding orders for 98 ships as of June 2012, according to Clarkson. It employed 7,046 people at the end of last year, according to its annual report. The shipbuilder has built a pipe-laying vessel for Cnooc and it has a strategic cooperation agreement with the energy company.

Well Advantage and other unknown traders stockpiled shares of Nexen before Cnooc announced plans to buy the Calgary-based energy company for $15.1 billion, according to the SEC. The regulator acted to freeze accounts less than 24 hours after Well Advantage placed an order to liquidate its position, it said. The investigation continues, it said July 27.

The traders may have to pay multiples of the profit they made from illegal deals to settle the case, based on previous incidents, said David Webb, the founder of corporate-governance website Webb-site.com. The frozen accounts may make a settlement more probable as the traders won’t be able to access cash, he said. Still, there may be a long-term impact on reputations.

“Cases such as this bring the integrity of the persons involved into question,” Webb said. “And, if they are running a bank or a listed company, then it tends to tarnish the firm too.”

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HONG KONG (Reuters) - Jiangsu Rongsheng Heavy Industries Co Ltd has appointed Morgan Stanleyand JP Morganto finalize plans for its long-awaited IPO in Hong Kong, aiming to raise up to $1.5 billion in the fourth quarter, sources told Reuters on Tuesday.

This is Rongsheng’s latest bid to go public after it failed to raise more than $2 billion from a planned IPO in Hong Kong in 2008, mainly as a result of the global financial crisis.

Rongsheng"s early main shareholders included an Asia investment arm of Goldman Sachs, U.S. hedge fund D.E. Shaw and New Horizon, a China fund founded by the son of Chinese Premier Wen Jiabao.

The three investors sold off their stakes in Rongsheng for a profit early this year, said the sources familiar with the situation. Representatives for the banks, funds and Rongsheng all declined to comment.

Rongsheng’s revived IPO plan comes at a challenging time. Smaller domestic rival, New Century Shipbuilding, slashed its Singapore IPO in half last week, planning to raise up to $560 million from the originally planned $1.24 billion due to weak market conditions.

Given uncertainty in the global shipbuilding business environment as well as growing concerns over a huge flow of fund-raising events in Hong Kong, investment bankers suggest the potential size for Rongsheng could be $1 billion to $1.5 billion, according to the sources.

Investors have turned cautious on the industry after it was dealt a heavy blow by the economic downturn, with orders shrinking last year and the sector yet to fully recover.

Rongsheng is seeking to tap capital markets to fund fast growth and aims to catch up with bigger state-owned rivals such as Guangzhou Shipyard International Co Ltd.

Rongsheng won a $484 million deal to build four ships for Oman Shipping Co last year. The vessels would carry exports from an iron ore pellet plant in northern Oman which is expected to begin production in the second half of 2010.

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HONG KONG (Reuters) - Shares in China Rongsheng Heavy Industries Group Holdings Ltdtumbled 16 percent on Monday after the U.S. securities regulator accused a company controlled by the shipbuilder"s chairman of insider trading ahead of China"s CNOOC Ltd"sbid for Canadian oil company Nexen Inc.Labourers work at a Rongsheng Heavy Industries shipyard in Nantong, Jiangsu province May 21, 2012. REUTERS/Aly Song

The U.S. Securities and Exchange Commission filed a complaint in a U.S. court on Friday against a company controlled by Rongsheng Chairman Zhang Zhirong, and other traders, accusing them of making more than $13 million (8.2 million pounds) from insider trading ahead of CNOOC’s $15.1 billion bid for Nexen.

“The news around the chairman comes on the back of other operational and credibility issues,” Barclays said in a note to clients. “We think China Rongsheng presents significant company-specific risk.”

In a filing with the Hong Kong stock exchange, Rongsheng - which entered a strategic cooperation agreement with CNOOC in 2010 - said it did not expect the U.S. investigation to affect its operations. It said Zhang did not have an executive role in the company.

The SEC does not allege any wrongdoing by Zhang, but notes that he is the controlling shareholder of a company that engages in significant business activities with CNOOC. CNOOC in Beijing has declined comment on the matter.

Rongsheng, controlled by Zhang, also issued a profit warning on Monday, saying first-half earnings would fall sharply as a result of the shipbuilding downturn.

“Since weak earnings had been expected and the stock had already come down quite a bit, the early selling was mainly triggered by the insider trading probe,” said Steven Leung, a director at UOB Kay Hian.

“Investors are very sensitive to this kind of news and they simply unloaded their stakes on the worry that they will not be able to exit their investment if the company involved gets suspended,” he said.

The SEC said on Friday that a federal court in Manhattan had frozen assets worth more than $38 million belonging to Hong Kong-based Well Advantage, controlled by Zhang, and other unnamed traders who used accounts in Hong Kong and Singapore to trade in Nexen stock.

Zhang was ranked the 22th richest Chinese person by Forbes Magazine in September 2011. But his net worth fell by more than half in the past year to $2.6 billion in March 2012 as shares of Rongsheng tumbled.

Shares of Glorious Property Holdings Ltd, a Chinese real-estate developer controlled by Zhang Zhirong, also fell sharply. The stock was down 12.9 percent as of 0304 GMT.

The unnamed Singapore traders used accounts in the names of Phillip Securities and Citibank C.N, while Well Advantage made its trades through accounts held at UBS Securities and Citigroup Global Markets. Neither of the Well Advantage accounts had traded Nexen shares since January 2012, and the Citigroup account had been completely dormant for over six months, the SEC says.

Valemax ships are a fleet of very large ore carriers (VLOC) owned or chartered by the Brazilian mining company Vale S.A. to carry iron ore from Brazil to European and Asian ports. With a capacity ranging from 380,000 to 400,000 tons deadweight, the vessels meet the Chinamax standard of ship measurements for limits on draft and beam. Valemax ships are the largest bulk carriers ever constructed, when measuring deadweight tonnage or length overall, and are amongst the longest ships of any type currently in service.

The first Valemax vessel, Vale Brasil, was delivered in 2011. Initially, all 35 ships of the first series were expected to be in service by 2013, but the last ship was not delivered until September 2016. In late 2015 and early 2016, Chinese shipping companies ordered 30 more ships with deliveries in 2018–2020. Three additional vessels were ordered by a Japanese shipping company, bringing the total number of Valemax vessels to 68 as of 2020

In 2008, Vale placed orders for twelve 400,000-ton Valemax ships to be constructed by Jiangsu Rongsheng Heavy Industries (RSHI) in China and ordered seven more ships from South Korean Daewoo Shipbuilding & Marine Engineering (DSME) in 2009. In addition sixteen more ships of similar size were ordered from Chinese and South Korean shipyards for other shipping companies, and chartered to Vale under long-term contracts. The first vessel was delivered in 2011 and the last in 2016.

The first Valemax vessels were ordered on 3 August 2008 when Vale signed a contract with the Chinese shipbuilder Jiangsu Rongsheng Heavy Industries (RSHI) for the construction of twelve 400,000-ton ore carriers. The development had reportedly started in 2007.

The second RSHI-built Valemax ship for Vale (Vale Dongjiakou) was delivered on 9 April 2012,Vale Dalian) on 20 May,Vale Hebei) on 28 September,Vale Shandong) on 7 December 2012,Vale Jiangsu) on 23 March 2013,Vale Caofeidian) on 22 July 2013,Vale Lianyungang) on 22 November 2013,Ore Majishan; renamed before delivery) on 11 July 2014,Ore Tianjin; renamed before delivery) on 18 October 2014,Ore Rizhao; renamed before delivery) on 15 December 2014.Valemax vessel of the original order by Vale, Ore Ningbo (renamed before delivery), was delivered on 23 January 2015.

On 2 November 2008, Oman Shipping Company signed a framework agreement with RSHI for the construction of four 400,000-ton vessels to transport iron ore from Brazil to the Port of Sohar in Oman, where Vale is expected to open a steel plant in near future.Jazer, Yanqul, Al Kamil and Wafi,Vale Liwa, Vale Sohar, Vale Shinas and Vale Saham. The steel cutting ceremony for the first two vessels was held on 8 July 2010 and they were launched on 19 March 2012.Vale Liwa entered service in August 2012, followed by Vale Sohar in September 2012, Vale Saham in January 2013, and Vale Shinas in March 2013. The ships reportedly received additional strengthening due to the Vale Beijing incident.classification societies such as American Bureau of Shipping and Lloyd"s Register.

The Chinese shipbuilder"s ability to deliver any of the very large ore carriers ordered by Vale in time was doubted already before the first ship was built.Valemax vessels will be delivered from the Chinese shipyard in 2011 instead of the planned six due to delays in construction.Vale China) was delivered before the end of the year. Furthermore, later reports claimed that the ships ordered by Vale had a capacity of only 380,000 tons even though according to the Det Norske Veritas database entries all Chinese-built ships have a deadweight tonnage in excess of 400,000 tons and in the past Vale has referred to the ships ordered from Rongsheng as "400,000-ton" vessels. The reduction in cargo capacity, at least on paper, may have been due to the reluctance of Chinese officials to accept the 400,000-ton ships to Chinese ports.

In April 2012, it was reported that Vale had refused delivery for three Valemax ships recently completed by Jiangsu Rongsheng Heavy Industries. This was seen as a move against the Chinese officials who have not allowed the 400,000-ton ships to dock in Chinese ports.

In addition to the ships Vale ordered for itself, more ships of similar size were to be built for other shipping companies and chartered to Vale under exclusive long-term contracts. Eight very large ore carriers were ordered from the South Korean shipbuilder STX Offshore & Shipbuilding in Jinhae, South Korea (STX Jinhae), and Dalian, China (STX Dalian). The shipping company, STX Pan Ocean, signed a 25-year contract with Vale in 2009.Valemax vessels built by STX, 374,400 tons, is slightly smaller than that of the similar ships built by DSME and RSHI.

The first STX-built Valemax vessel, Vale Beijing, was delivered by STX Jinhae on 27 September 2011. Although another vessel was expected to take delivery later that year, only one ship was delivered. The second ship, Vale Qingdao, was delivered also by STX Jinhae on 13 April 2012,Vale Espirito Santo and Vale Indonesia, were built by STX Dalian and delivered on 17 September 2012 and 30 October 2012, respectively.Vale Fujiyama, was again built by STX Jinhae and delivered on 26 November 2012.Vale Tubarao, was delivered by STX Dalian on 30 January 2013.Vale Maranhao entered service on 29 August.

On 30 April 2007 Berge Bulk signed a contract with the Chinese shipbuilding company Bohai Shipbuilding Heavy Industry for the construction of four 388,000-ton very large ore carriers. Although initially scheduled for delivery in 2010, the first vessel, Berge Everest, was delivered on 23 September 2011.Berge Aconcagua on 15 March 2012Berge Jaya on 12 June 2012.Berge Neblina, was initially also scheduled to be delivered in 2012, but entered service on 4 January 2013.

Had Vale not ordered the Valemax fleet in 2008, these ships would have become the largest bulk carriers in the world, surpassing Berge Bulk"s own Berge Stahl. The four ships have since been chartered by Vale and, despite slight differences in design and contract date predating that of the ships ordered by Vale, they are also referred to as Valemax vessels.

In March 2016, it was reported that three Chinese companies China Ocean Shipping (Group) Company (COSCO), China Merchants Energy Shipping and Industrial and Commercial Bank of China (ICBC) had ordered ten Valemax vessels each from four Chinese shipyards with a total price of US$2.5 billion.Valemax ships ordered by China Merchants Energy Shipping would be built by Shanghai Waigaoqiao Shipbuilding (4 ships), Qingdao Beihai Shipbuilding (4 ships), and China Merchants Group-controlled China Merchants Heavy Industry (Jiangsu) (2 ships).Yangzijian Shipbuilding while the remaining four would be awarded to Qingdao Beihai Shipbuilding.Valemax vessels, Yuan He Hai, was delivered on 11 January 2018

In December 2016, the Japanese shipping company NS United ordered a single 400,000DWT very large ore carrier from Japan Marine United after signing a 25-year contract with Vale. The vessel, which would become the first Valemax ship built in Japan, was delivered in December 2019 as

On 24 May 2011, Vale Brasil received her first cargo at the Brazilian port Terminal Marítimo de Ponta da Madeira, 391,000 tons of iron ore bound for Dalian in China.Atlantic Ocean in June after rounding the Cape of Good Hope and was rerouted to Taranto, Italy.Vale Brasil was not allowed to enter the Chinese port fully laden, but according to Vale the destination was changed due to commercial, not political reasons.Valemax vessels have unloaded at various ports, such as Dalian in China,Sohar in Oman,Rotterdam,Ōita in Japan,Dangjin in South Korea,Subic Bay in the Philippines.

On 31 January 2012, the Ministry of Commerce of the People"s Republic of China officially banned dry bulk carriers with capacity exceeding 300,000 tons from entering Chinese ports in order to protect the domestic freight industry. Prior to this, only one of the new very large ore carrier chartered by Vale, Berge Everest, had unloaded Brazilian iron ore at a Chinese port – the ship arrived at Dalian on 28 December 2011 – but this was assumed to be a bureaucratic fluke as no Chinese port has regulatory approval to receive dry bulk carriers of that size.

According to Vale, the discussions about allowing the Valemax ships to enter Chinese ports had been ongoing since the ban came into forceNingbo Port Company, the construction of the new port facilities would take two to three years, causing further delays for Vale which in the meantime is losing $2–3 per ton of ore due to the ban.Vale Malaysia became the first 400,000-ton Valemax vessel to call a Chinese port. The partially loaded ship docked at the port of Lianyungang en route from the Vale transshipment hub in Subic Bay, Philippines. However, at the time the Chinese officials had not yet lifted the ban for fully laden Valemax vessels.Valemax vessel to call a Chinese port since 2012, Shandong Da Ren, docked at the Dongjiakou port in Qingdao on 2 October 2014.

Originally, Vale planned to own and manage a fleet of 19 Valemax vessels by itself in order to control the wildly fluctuating charter prices for large bulk carriers which had dropped from US$233,988 per day in June 2008 to as low as US$2,400 by December of the same year. However, because of the global economic downturn and the reluctance of Chinese ports to accept the fully laden ships, the new board of directors decided to focus capital allocation to mining. As a result, Vale decided to sell the ships and charter them back under long-term contracts.

In September 2014, Vale signed a framework agreement for strategic co-operation in iron ore shipping with the state-owned China Ocean Shipping (Group) Company (COSCO).Valemax vessels has been effectively lifted and fully laden ships have called Chinese ports.

In May 2015, four ships were sold China Ore Shipping Pte. Ltd, a joint venture between COSCO and China Shipping Development Company, for US$445 million.Valemax vessels to officially change ownership. Later, four more ships were sold to China Merchants Energy Shipping.Valemax ships owned by the mining company would be sold and leased back from the new owners.Valemax vessels were reportedly sold in December 2017.

The cause of the damage has not been published by STX, but design or construction flaws, material fatigue and incorrect loading have all been suspected.Vale Beijing remained anchored off Ponta da Madeira with a crawler crane on the deck and an oceangoing tug standing bySão Luís for Oman. After unloading at Sohar, the ship headed to South Korea for dry docking and arrived at STX shipyard in Jinhae, where it was delivered in September 2011, for inspection and repairs on 21 April 2012.Vale Beijing returned to service in July 2012.

Had Vale Beijing sunk at the pier instead of being moved to an anchorage area outside the port shortly after the leak was detected, the incident would have severely delayed the operations at the port which ships out about 10 percent of the world"s iron ore production.Vale Beijing delayed the loading of only 750,000 tons of iron ore,Trade Daring, a 145,000 DWT ore-bulk-oil carrier, broke in two at the same location due to incorrect loading, blocking the deepwater pier of Ponta da Madeira for more than six weeks before the wreck was removed and scuttled offshore.

After the incident, the China Shipowners" Association (CSA) questioned the safety of the 400,000-ton ore carriers commissioned by Vale. CSA was particularly concerned about the ability of the newly built ships to withstand various sea conditions and the pollution resulting from fuel oil leaks in case of structural damageValemax ship can carry around 10,000 tons of fuel oil.port of Lianyungang in the Jiangsu province.

All Valemax vessels, with the exception of those owned and operated by Berge Bulk, were initially given names consisting of the word Vale and a place name, either one related to the mining operations of Vale S.A. in Brazil or a potential destination for the new iron ore carriers. However, none of the original 35 Valemax vessels retains its original name.

When Vale signed a $500 million contract with the Chinese shipping company Shandong Shipping for the operation of four Valemax vessels, the ships were given new names beginning with Shandong.Valemax vessels were sold to China Ore Shipping, the vessels were given names beginning with Yuan and ending with Hai.Valemax vessels were given names starting with Pacific after Vale sold the ships to China Merchants Energy Shipping.

Additionally, a number of Valemax vessels have been renamed by replacing Vale with Ore or Sea but retaining the second part of the name. Vale Sohar, Vale Saham, Vale Liwa and Vale Shinas have also been renamed Sohar Max, Saham Max, Liwa Max and Shinas Max, respectively.

Vale Sohar, built by Jiangsu Rongsheng Heavy Industries (RSHI), awaiting delivery for Oman Shipping Company in Nantong, China, in September 2012. Note the minor differences to the South Korean-built Vale Rio de Janeiro.

Although similar in size, there are some differences in main dimensions, cargo capacity, machinery and external appearance between the Valemax ships built in South Korea, China and Japan. While the first series of 35 ships was more diverse, all 30 Chinese-built Valemax vessels of the second series are based on the same standard design, SDARI 400OC, by Shanghai Merchant Ship Design & Research Institute (SDARI).G400OC.

Like most modern bulk carriers, Valemax vessels are powered by a single two-stroke low-speed crosshead diesel engine directly coupled to a fixed-pitch propeller. The ships built by DSME and STX in South Korea are powered by 7-cylinder MAN B&W 7S80ME-C8 and 7S80ME-C engines, respectively, and the ships built by RSHI and Bohai Shipbuilding Heavy Industry have Wärtsilä 7RT-flex82T and 7RT-flex84T engines, respectively.maximum continuous rating of around 29,000 kW (39,000 hp) when turning the 10-metre (33 ft) propeller at 76–78 rpm, giving the ships a service speed of around 15 knots (28 km/h; 17 mph) while burning almost 100 tons of heavy fuel oil per day.cargo ton-mile are very low and thus the Valemax vessels are in fact among the most efficient long-distance dry bulk carriers in service – Vale has reported a 35% drop in emissions per ton of cargo carried in comparison to older ships.

The new ships are considerably larger than the previous record holder, 364,767-ton Berge Stahl, which had been the largest bulk carrier in the world since it was built in 1986. While the draft of the old vessel is the same as that of the Valemax vessels — 23 metres (75 ft) — the new ships are 20 metres (66 ft) longer and 1.5 metres (4.9 ft) wider than the old freighter, and can carry about 10% more cargo.

The Valemax vessels are also the second largest ships in service by deadweight tonnage, second only to the TI-class supertankers that have a deadweight tonnage of over 440,000 tons.Knock Nevis in the adjacent image), built in 1979 and broken up in 2009, was 458.46 metres (1,504.1 ft) long and had a deadweight tonnage of 564,650 tonscontainer ship

Vale"s decision to construct a fleet of 400,000-ton ore carriers was widely criticized by other shipping companies. The new Valemax ships, expected to cut the company"s transportation costs by 20–25%,financial crisis. The freight rates, down 80% from 2008, were expected to drop further down to the levels of 1977.BIMCO, the Valemax vessels could displace up to 168 150,000–180,000-ton capesize bulk carriers, around 15% of the existing fleet, from the long haul voyages and force them to less profitable shorter routes.

Vale also faced opposition from the China Shipowners" Association which claimed that the Brazilian mining company is seeking to control the freight market as it has already done with the iron ore prices. In the past, the Chinese ports were not allowed to increase their capacity to more than 300,000 tons for dry bulk carriers due to safety and environmental concerns. If the 400,000-ton Valemax vessels are allowed to Chinese ports, Vale"s monopoly on the route may result in losses for other shipping companies operating capesize ore carriers.Vale Brasil was diverted to Italy on her maiden voyage, there was speculation that the domestic steel industry of China had urged the authorities to protect their commercial interests.

As a precaution against prolonged ban of Valemax vessels from the Chinese ports, Vale started constructing both land- and offshore-based transshipment hubs where iron ore can be loaded to smaller ships for final delivery. Ore Fabrica, a 280,000 DWT crude oil tanker converted in China, arrived at Subic Bay, Philippines, in late January 2012.Ore Sossego, entered service in 2013.Zhang Shouguo, who called it "waste of resource" and questioned Vale"s ability to run the fleet as properly as professional shipping companies.Ore Fabrica and Ore Sossego were sold for scrap.

In May 2012, the largest Chinese operator of dry bulk carriers, state-owned China Ocean Shipping (Group) Company (COSCO), claimed that Vale had refused to use the company"s ships since March as a protest against banning the Valemax vessels from Chinese ports. Vale has refused to give comments on the issue.

Luiz Inácio Lula da Silva, the former president of Brazil, also publicly criticized Vale"s former CEO Roger Agnelli for the decision of ordering ships from Asian shipyards instead of building them in Brazil, where Lula da Silva has been trying to revitalize the shipbuilding industry to create more jobs and increase local demand for steel and other products. Agnelli, who later left his position following continued criticism, replied that the Brazilian shipyards did not have the capacity to build such ships and stated that during the past few years Vale had commissioned 51 vessels from Brazilian shipyards.

Sultanate and Brazil, Agreement to Lease four ships for Steel Ore. Oman Shipping Company News Press Releases, 2 November 2008. Retrieved 5 September 2011

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China Rongsheng Heavy Industries Group Holdings Ltd, the private-sector shipbuilder that had sought financial assistance, has secured cash for restructuring and announced changing the company"s name as it shifts focus to energy.

The country"s second-largest private vessel maker has been given a HK$3.23 billion ($417 million) cash injection, the company said in Hong Kong Stock Exchange filings.

The company"s struggles illustrate the difficulties shipbuilders face in competing with State-owned yards that have government backing and easier access to financing.

Shifting its focus to oil will need a lot more funds, which Rongsheng already struggled to get as a shipbuilder, said Francis Lun, chief executive officer of Geo Securities Ltd.

"They are already having funding problems. Their gamble has backfired. Some people might be concerned they might need a lot of funding in future because oil exploration is a very capital-intensive business," said Hong Kong-based Lun.

The company had sought help from the government to benefit from a rebound in China"s shipbuilding industry after cutting its workforce and running up huge debts amid a global downturn in orders.

In September the Jiangsu shipyard unit was listed among 51 shipbuilding facilities in China deemed worthy of policy support as the industry grapples with overcapacity.

Rongsheng said it has now received the results of an appraisal by an independent assessor, which will be used as the basis for the restructuring in which it also plans to change its name to China Huarong Energy Co to more accurately reflect its expansion and new business scope.

Some of Rongsheng"s subsidiaries, including Hefei Rong An Power Machinery Co and Rongsheng Machinery Co, signed agreements with domestic lenders, led by Shanghai Pudong Development Bank, to extend debt repayments to the end of 2015.

The Shanghai-based company said on Aug 21 that it is entering the energy business by buying 60 percent in a Kyrgyzstan oilfield by issuing new shares. It said on Oct 15 that it is seeking to identify new investment opportunities outside of China including in Central Asia.

Shares in the maker of bulk carriers and oil tankers had been suspended from trading since Aug 29 in Hong Kong, pending the restructuring details. Rongsheng had first-half net losses of 3.06 billion yuan ($501 million), more than double last year"s.

Rongsheng was overdue on principal and interest payments on 8.57 billion yuan of bank loans on June 30, according to a Hong Kong Stock Exchange filing on Aug 29.

The shipyard of China Rongsheng Heavy Industries Group Holdings Ltd in Rugao, Jiangsu province. The company will generate HK$2.55 billion ($326.4 million) in a share sale in the next six months and HK$3.23 billion thereafter. Li Junfeng / China Daily

The company said that the struggles of its shipbuilding arm, Jiangsu Rongsheng Heavy Industries, had been hampering efforts to expand in energy services

China Rongsheng Heavy Industries Group Holdings Limited [1101.HK] has announced that it has signed a memorandum of understanding that will see its shipbuilding business, Jiangsu Rongsheng Heavy Industries, sold to an undisclosed potential purchaser.

The deal involves the core assets and liabilities of both its onshore shipbuilding and offshore engineering business, though the company stressed that a formal transaction agreement is still pending.

According to the company, the depressed shipbuilding market had led to operational difficulties at Jiangsu Rongsheng Heavy Industries, while its highly-leveraged state was also interfering with the company"s efforts to expand in oil and gas exploration elsewhere.

"The Potential Transaction shall adjust and optimize the assets and business of the Group, and divest the relevant assets and liabilities of the shipbuilding business and offshore engineering business, which shall help to ease the debt burden of the Group, enhance the flexibility of fund utilization, better implement the strategy of business transformation and transformation into an energy service provider focusing in the oil and natural gas market," said the company.

It was reported in 2012 that in the face of market difficulties, China Rongsheng Heavy Industries had turned its focus to building containerships with a "green design" as one its key products.

However, a year later, the company was reported as saying that the Chinese shipbuilding industry was still experiencing "unprecedented challenges" as demand waned and ship prices failed to increase.