china rongsheng heavy industries group holdings limited factory

China Rongsheng Heavy Industries Group Holdings Limited is an investment holding company. The Company has four segments: shipbuilding, offshore engineering, marine engine building and engineering machinery. The Company commenced the construction of its shipyard in Nantong, Jiangsu Province. As of December 31, 2009, the Company鈥檚 shipyard covers approximately four million square meters and occupies 3,058 meters of Yangtze River shoreline. The Company operates its marine engine building business through Rong An Power Machinery. In October 2009, Rong An Power Machinery delivered its marine engine product, a Wartsila 6RT-flex68D low-speed marine diesel engine. The Company through Zhenyu Machinery offers 16 varieties of hydraulic excavators and two varieties of hydraulic crawler cranes. Its products include bulk carriers, crude oil tankers, containerships, offshore engineering products, low-speed marine diesel engines and small to mid-size excavators and cranes for construction and mining.

Ch Rongsheng isa leadinglarge-scaleheavy industry enterprisegroup.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, coveringwide services ranging from shipbuilding, offshoreengineering,power engineering, engineering machineryandetc. Until Dec.With thevision of “cultivate world first-class employees and create world first-class enterprise”,the spirit of “integrity-based, the pursuit of excellence”, and the responsibility ofrevitalizingnational industry, it runs fast toward the great goal of world first-class diversified heavy industry group.

Plunkett Research Online provides a great ‘one stop shop’ for us to quickly come up to speed on major industries. It provides us with an overall analysis of the market, key statistics, and overviews of the major players in the industry in an online service that is fast, easy to navigate, and reliable.

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.

“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.

The exodus has left row upon row of deserted apartments, with just a few old garments strewn on the floor and empty name tags to show for what was a bustling community before China’s economic growth began to slow and credit tightened at a time when global shipping, too, turned down.

(24 November 2013, 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, is pleased to announce the delivery of its 380,000

DWT class Very Large Ore Carrier ("VLOC") "VALE LIANYUNGANG" to Vale S.A. ("Vale") recently. The vessel is the twelfth 380,000 DWT class VLOC delivered by the Group since its inception, and is the Group"s fifth delivery of VLOCs this year.

Vale is an important strategic partner of China Rongsheng Heavy Industries. The Group has formed a close and seamless partnership with Vale, and the Brazilian mining giant is a reputable firm with a strong track record in risk management. Among the 16

The 380,000 DWT class VLOC built by China Rongsheng measures 360 meters in length, 65 meters in breadth and 30.4 meters in depth, and is currently the world"s largest VLOC. The self-developed and high-tech vessel type represents the most advanced technology of VLOCs in the world. It adopts an environmentally friendly design focusing on lowering fuel consumption and reducing CO2 emission, while its operating efficiency exceeds most existing ore carriers. With Energy Efficiency Design Index ("EEDI") recorded at approximately 1.99 during sea trials, Rongsheng-built VLOCs are in line with low-carbon green product initiative and meets the benchmark requirements on emission reduction set by International Maritime Organization ("IMO"), which came into effect as of 1 January 2013.

China Rongsheng Heavy Industries Group Holdings Limited and its subsidiaries are a leading diversified large heavy industries group in China. Our headquarters is located in Hong Kong, with manufacturing bases in Nantong (Jiangsu Province) and Hefei (Anhui Province). Rongsheng Offshore & Marine was established in Singapore to promote our offshore engineering business. Our business segments include shipbuilding, offshore engineering, marine engine building and engineering machinery. According to Clarkson Research, China Rongsheng Heavy Industries was the largest non-state-owned shipbuilder in the PRC in terms of orders on hand measured by DWT as at the end of June 2013. The Group operates the largest shipyard in the PRC and is a global leader in the manufacture of the very large ore carrier.

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, announced that it has delivered its first 380,000 DWT Very Large Ore Carrier (VLOC) to Vale S.A. (“Vale”). The 380,000 DWT VLOC is a high-tech vessel self-developed by the Group. It is not only the world’s largest dry bulk carrier with the largest cargo capacity, but also incorporates the Group’s most advanced shipbuilding technology in very large bulk carrier. Successful delivery of the new vessel marked an innovative breakthrough for the shipbuilding industry in China.

The 380,000 DWT VLOC was christened “VALE CHINA” during July this year. To date, it is the largest bulk carrier built by Chinese shipbuilding industry in terms of DWT as well as the world’s largest bulk carrier with a capacity up to 400,000 DWT. The vessel measures 360 metres in length, 65 metres in breadth and 30.4 metres in depth.

Mr. Zhang Zhi Rong, Chairman of the Board and Non-executive Director of China Rongsheng Heavy Industries, said, “The successful delivery of the VLOC not only has extraordinary significance for the development of the shipbuilding industry in China, it also marks an important breakthrough of China Rongsheng Heavy Industries in moving towards its goal of developing into one of the world’s top diversified heavy industries group. The Group wishes to pave the way forward for private enterprises within China’s heavy industry to wield greater influence in the global market.”

Mr. Chen Qiang, Chief Executive Officer and Executive Director of China Rongsheng Heavy Industries, said, “‘VALE CHINA’ represents the most advanced bulk carrier in the world. The technologies needed for building the vessel are far more challenging than those for building the typical 200,000 DWT VLOCs. Far more advanced technologies are required to meet more demanding specifications on its structure, pressure endurance and fluid dynamic design. The delivery of the new vessel demonstrates the Group’s leadership in the global VLOC shipbuilding market.

The sea trial voyage of ‘VALE CHINA’ has been successful, with an outstanding performance in cargo loading capability and speed. While the second and third 380,000 DWT VLOCs have also been launched, the Group expects smoother delivery of other VLOCs. We are well prepared for the coming peak of delivery period.”

Mr. Marcus Moura, General Manager of Shipbuilding and Conversions of Vale China, said, “‘VALE CHINA’ is professionally designed and built by China Rongsheng Heavy Industries, and is tailored to address VALE’s trade pattern and terminals requirements in Brazil. This fantastic vessel certainly will enhance our competitiveness in the iron ore market, also help our company to cope with our ambitious iron ore export plan to Asia. We would like to thank China Rongsheng Heavy Industries for its hard and dedicated work and for keeping the commitment to deliver this vessel to our fleet within the required quality standards.”

The main engine of “VALE CHINA”, the 7RT-flex 82T, is self-built by China Rongsheng Heavy Industries and produced by Hefei Rongan Power Machinery Co. Ltd., the Group’s marine engine building division. The engine has not only gained a high degree of recognition from shipowners, but is also the first Warsila low-speed diesel engine with maximum power manufactured by a Chinese enterprise independently.

The new engine boasts the advantages of huge power output, low oil consumption, compact structure, and reduced emission of SOx and NOx. All these features demonstrate the Group’s all-round shipbuilding ability while addressing the operational and environmental protection concerns of shipowners. In August 2008, the Group signed shipbuilding contracts for twelve 380,000 DWT VLOCs with Vale, having a total contract value as high as US$1.6 billion. The work under the contracts attracted wide attention at the time as it set three world records in the contract value of a single shipbuilding order, carrying deadweight tonnage of single bulk carriers and total deadweight tonnage of orders. “VALE CHINA” delivered today is the first vessel for the VLOC series. In 2009, Vale also announced that it would rent four VLOCs of the same type from Oman Shipping Company which were also to be built by China Rongsheng Heavy Industries.

--FILE--A shipbuilding plant of China Rongsheng Heavy Industries Group Holdings Ltd is seen in Nantong city, east Chinas Jiangsu province, 23 May 2012. China Rongsheng Heavy Industries Group Holdings Ltd may report its first annual loss in four years amid a slump in the shipbuilding market. The decline in demand has led to the sharp decrease in orders and prices of vessels compared with the same period last year, Rongsheng Chinas largest private shipbuilder, said in a filing to the Hong Kong stock exchange yesterday (24 December 2012), without giving figures. The shipbuilder in August reported an 82 percent plunge in first-half earnings as a global economic slowdown and overcapacity sank demand for vessels.

RM2CY8K6W–Labourers work at a Rongsheng Heavy Industries shipyard 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 CONSTRUCTION COMMODITIES)

RM2CXEFJ0–A view of the Rongsheng Heavy Industries shipyard is seen in Nantong, Jiangsu province December 4, 2013. 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. Picture taken December 4, 2013. REUTERS/Aly Song (CHINA - Tags: BUSINESS EMPLOYMENT SOCIETY)

RMW96H39–--File--View of an exhibition hall at the headquarters of Rongsheng Heavy Industries Group in Nantong, east Chinas Jiangsu province, 4 November 2010.

RM2HMPEWX–Zhangjiakou, China"s Hebei Province. 11th Feb, 2022. Liu Rongsheng of China competes during cross-country skiing men"s 15km classic at National Cross-Country Skiing Centre in Zhangjiakou, north China"s Hebei Province, Feb. 11, 2022. Credit: Hu Huhu/Xinhua/Alamy Live News

RMW92M88–--FILE--The stand of Rongsheng Heavy Industries is seen during an exhibition in Shanghai, China, 29 November 2011. Rongsheng Heavy Industries, whose

RMW95J26–--FILE--Zhang Zhirong, Chairman of Glorious Property Holdings Limited and Chairman of Rongsheng Heavy Industries Group Holdings Ltd., attends a ground

RMW961RD–--FILE--View of the stand of Rongsheng Heavy Industries during an exhibition in Shanghai, China, 29 November 2011. China Rongsheng Heavy Industries

RMW95HXC–--FILE--Visitors look at the machines of Anhui Rongan Heavy Industry, the subsidiary of China Rongsheng Heavy Industries Group Holdings Ltd in an Expo

RM2CWMP5X–A vacant dormitory is seen at the Rongsheng community in Nantong, Jiangsu province December 4, 2013. 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. Picture taken December 4, 2013. REUTERS/Aly Song (CHINA - Tags: BUSINESS EMPLOYMENT SOCIETY)

RM2HMPDMD–Zhangjiakou, China"s Hebei Province. 11th Feb, 2022. Liu Rongsheng of China passes the finish line during cross-country skiing men"s 15km classic at National Cross-Country Skiing Centre in Zhangjiakou, north China"s Hebei Province, Feb. 11, 2022. Credit: Mu Yu/Xinhua/Alamy Live News

RM2HKYKWJ–Zhangjiakou, China"s Hebei Province. 6th Feb, 2022. Liu Rongsheng (C) of China competes during Cross-Country Skiing Men"s 15km 15km Skiathlon at National Cross-Country Skiing Centre in Zhangjiakou, north China"s Hebei Province, Feb. 6, 2022. Credit: Hu Huhu/Xinhua/Alamy Live News

RMW95J09–--FILE--Visitors look at the machines of Anhui Rongan Heavy Industry, the subsidiary of China Rongsheng Heavy Industries Group Holdings Ltd in an Expo

RMW96KRG–--File--Visitors are seen in the exhibition hall at the headquarters of Rongsheng Heavy Industries Group in Nantong, east Chinas Jiangsu province, 4 N

RM2D0PB6A–A closed police station is seen at the Rongsheng community in Nantong, Jiangsu province December 4, 2013. 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. Picture taken December 4, 2013. REUTERS/Aly Song (CHINA - Tags: BUSINESS EMPLOYMENT SOCIETY CRIME LAW)

RM2HKYJWB–Zhangjiakou, China"s Hebei Province. 6th Feb, 2022. Liu Rongsheng (R) of China competes during Cross-Country Skiing Men"s 15km 15km Skiathlon at National Cross-Country Skiing Centre in Zhangjiakou, north China"s Hebei Province, Feb. 6, 2022. Credit: Mu Yu/Xinhua/Alamy Live News

RMW96KTG–--FILE--People visit the headquarters of Rongsheng Heavy Industries in Nantong city, east Chinas Jiangsu province, 4 November 2010. Shipbuilder Chin

RMW92M7G–--FILE--A Chinese employee poses at the stand of Rongsheng Heavy Industries during an exhibition in Shanghai, China, 29 November 2011. Rongsheng Hea

RM2CYH4T9–Workers ride a motorcycle past closed restaurants at the Rongsheng community in Nantong, Jiangsu province December 4, 2013. 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. Picture taken December 4, 2013. REUTERS/Aly Song (CHINA - Tags: BUSINESS EMPLOYMENT SOCIETY)

RM2HKYWMC–Zhangjiakou, China"s Hebei Province. 6th Feb, 2022. Liu Rongsheng of China competes during Cross-Country Skiing Men"s 15km 15km Skiathlon at National Cross-Country Skiing Centre in Zhangjiakou, north China"s Hebei Province, Feb. 6, 2022. Credit: Liu Chan/Xinhua/Alamy Live News

RMW961KH–--FILE--A Chinese employee poses at the stand of Rongsheng Heavy Industries during an exhibition in Shanghai, China, 29 November 2011. China Rongshe

RMW8CJA6–--FILE--A netizen browses the Chinese website of Rongsheng Heavy Industries in Liaocheng city, east China"s Shandong province, 3 July 2013. Chinese

RMW8YJ5G–--FILE--A ship is being built at the shipyard of Rongsheng Heavy Industries in Rugao, Nantong city, east Chinas Jiangsu province, 12 December 2013.

RM2D01WH0–A worker rides a bicycle inside of the Rongsheng Heavy Industries shipyard in Nantong, Jiangsu province December 4, 2013. 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. Picture taken December 4, 2013. REUTERS/Aly Song (CHINA - Tags: BUSINESS EMPLOYMENT SOCIETY)

RM2HKYH9T–Zhangjiakou, China"s Hebei Province. 6th Feb, 2022. Liu Rongsheng (front) of China competes during Cross-Country Skiing Men"s 15km 15km Skiathlon at National Cross-Country Skiing Centre in Zhangjiakou, north China"s Hebei Province, Feb. 6, 2022. Credit: Zhang Hongxiang/Xinhua/Alamy Live News

RMW8WYE1–--FILE--A signboard of Rongsheng is pictured at a shipyard of Rongsheng Heavy Industries in Rugao city, east Chinas Jiangsu province, 12 December 2013

RM2CXAAER–Workers ride motorcycles and bicycle after their shifts at an entrance of the Rongsheng Heavy Industries shipyard in Nantong, Jiangsu province December 4, 2013. 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. Picture taken December 4, 2013. REUTERS/Aly Song (CHINA - Tags: BUSINESS EMPLOYMENT SOCIETY)

RMW96KPW–--FILE--Chinese workers are building a ship at the shipyard of Rongsheng Heavy Industries in Nantong city, east Chinas Jiangsu province, 4 November 20

RMW91GDK–--FILE--A netizen browses the Chinese website of Rongsheng Heavy Industries in Liaocheng city, east Chinas Shandong province, 3 July 2013. China Ron

RM2HKYH4D–Zhangjiakou, China"s Hebei Province. 6th Feb, 2022. Liu Rongsheng (front) of China competes during Cross-Country Skiing Men"s 15km 15km Skiathlon at National Cross-Country Skiing Centre in Zhangjiakou, north China"s Hebei Province, Feb. 6, 2022. Credit: Guo Cheng/Xinhua/Alamy Live News

RM2CY7A2X–A worker rides a motorcycle on an empty street at the Rongsheng community in Nantong, Jiangsu province December 4, 2013. 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. Picture taken December 4, 2013. REUTERS/Aly Song (CHINA - Tags: BUSINESS EMPLOYMENT SOCIETY)

RM2CXP561–Chen Qiang, chief executive officer of China Rongsheng Heavy Industries, attends 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: BUSINESS COMMODITIES MARITIME TRANSPORT)

RMW91GEJ–--FILE--A netizen browses the Chinese website of Rongsheng Heavy Industries in Liaocheng city, east Chinas Shandong province, 3 July 2013. China Ron

RM2HKYH7D–Zhangjiakou, China"s Hebei Province. 6th Feb, 2022. Liu Rongsheng of China competes during Cross-Country Skiing Men"s 15km 15km Skiathlon at National Cross-Country Skiing Centre in Zhangjiakou, north China"s Hebei Province, Feb. 6, 2022. Credit: Mu Yu/Xinhua/Alamy Live News

RMW8YE7M–--FILE--View of a shipyard of Rongsheng Heavy Industries in Nantong city, east Chinas Jiangsu province, 24 May 2012. China Rongsheng Heavy Industrie

RM2HN07XA–Zhangjiakou, China"s Hebei Province. 13th Feb, 2022. Liu Rongsheng of China competes during the cross-country skiing men"s 4x10 km relay of the Beijing Winter Olympics at National Cross-Country Skiing Centre in Zhangjiakou, north China"s Hebei Province, Feb. 13, 2022. Credit: Hu Huhu/Xinhua/Alamy Live News

RM2CXEBAD–Claudio Alves, Global Marketing Director of Vale, World"s largest iron ore miner, attends 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: BUSINESS COMMODITIES MARITIME TRANSPORT)

RMW93H43–--FILE--Ships are being built at a shipyard of Rongsheng Heavy Industries in Nantong city, east Chinas Jiangsu province, 24 May 2012. China Rongshen

RM2HN0G5E–Zhangjiakou, China"s Hebei Province. 13th Feb, 2022. Liu Rongsheng of China competes during the cross-country skiing men"s 4x10 km relay of the Beijing Winter Olympics at National Cross-Country Skiing Centre in Zhangjiakou, north China"s Hebei Province, Feb. 13, 2022. Credit: Zhang Hongxiang/Xinhua/Alamy Live News

RM2CY9JR4–Claudio Alves, Global Marketing Director of Vale, World"s largest iron ore miner, attends 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: BUSINESS COMMODITIES MARITIME TRANSPORT)

RMW93H40–--FILE--Ships are being built at a shipyard of Rongsheng Heavy Industries in Nantong city, east Chinas Jiangsu province, 24 May 2012. China Rongshen

RM2HN20KG–Zhangjiakou, China"s Hebei Province. 13th Feb, 2022. Liu Rongsheng of China competes during the cross-country skiing men"s 4x10 km relay of the Beijing Winter Olympics at National Cross-Country Skiing Centre in Zhangjiakou, north China"s Hebei Province, Feb. 13, 2022. Credit: Liu Chan/Xinhua/Alamy Live News

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)

RMW93H3M–--FILE--Ships are being built at a shipyard of Rongsheng Heavy Industries in Nantong city, east Chinas Jiangsu province, 24 May 2012. China Rongshen

RM2HN0G8E–Zhangjiakou, China"s Hebei Province. 13th Feb, 2022. Liu Rongsheng of China competes during the cross-country skiing men"s 4x10 km relay of the Beijing Winter Olympics at National Cross-Country Skiing Centre in Zhangjiakou, north China"s Hebei Province, Feb. 13, 2022. Credit: Zhang Hongxiang/Xinhua/Alamy Live News

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)

RMW93H6B–--FILE--Ships are being built at a shipyard of Rongsheng Heavy Industries in Nantong city, east Chinas Jiangsu province, 24 May 2012. China Rongshen

RM2HN2122–Zhangjiakou, China"s Hebei Province. 13th Feb, 2022. Liu Rongsheng of China competes during the cross-country skiing men"s 4x10 km relay of the Beijing Winter Olympics at National Cross-Country Skiing Centre in Zhangjiakou, north China"s Hebei Province, Feb. 13, 2022. Credit: Liu Chan/Xinhua/Alamy Live News

RMW8YE7R–--FILE--View of a shipyard of Rongsheng Heavy Industries in Nantong city, east Chinas Jiangsu province, 23 May 2012. A heavily indebted Chinese shi

RM2HMMKN4–Zhangjiakou, China"s Hebei Province. 11th Feb, 2022. Liu Rongsheng of China competes during cross-country skiing men"s 15km classic of Beijing 2022 Winter Olympics at National Cross-Country Skiing Centre in Zhangjiakou, north China"s Hebei Province, Feb. 11, 2022. Credit: Liu Chan/Xinhua/Alamy Live News

RM2HN211R–Zhangjiakou, China"s Hebei Province. 13th Feb, 2022. Liu Rongsheng pf China competes during the cross-country skiing men"s 4x10 km relay of the Beijing Winter Olympics at National Cross-Country Skiing Centre in Zhangjiakou, north China"s Hebei Province, Feb. 13, 2022. Credit: Deng Hua/Xinhua/Alamy Live News

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)

RMW96MJM–--FILE--A shipbuilding plant of China Rongsheng Heavy Industries Group Holdings Ltd is seen in Nantong city, east Chinas Jiangsu province, 23 May 2012

RMW96KT6–--FILE--Chinese workers walk past the logo of China Rongsheng Heavy Industries Group Holdings Ltd in an office building in Nantong city, east Chinas A

RM2HN1YFX–Zhangjiakou, China"s Hebei Province. 13th Feb, 2022. Liu Rongsheng (R) of China competes during the cross-country skiing men"s 4x10 km relay of the Beijing Winter Olympics at National Cross-Country Skiing Centre in Zhangjiakou, north China"s Hebei Province, Feb. 13, 2022. Credit: Mu Yu/Xinhua/Alamy Live News

RMW93F2K–--FILE--Chinese workers queue up to board a bus at a shipyard of Rongsheng Heavy Industries in Rugao city, east Chinas Jiangsu province, 23 August 201

RMW93H3T–--FILE--Chinese employees work at a shipbuilding plant of Jiangsu Rongsheng Heavy Industries Group Co. ,Ltd. in Nantong, east Chinas Jiangsu province,

RMW98F60–53-year old Hang Rongsheng measures the model of the Yellow Crane Tower, made from toothpicks, in Shanghai, China, 22 August 2011. Hang Rongsheng, c

RMW933HF–--FILE--A sign board of China Citic Bank, subsidiary of China Citic Group is seen in Weifang, east Chinas Shandong province, 22 December 2012. Rongs

RMW938Y8–--FILE--A customer walks out of a branch of China Citic Bank, subsidiary of China Citic Group in Guangzhou city, southeast Chinas Guangdong province,

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)

RMW92M4W–--FILE--Staff are seen at the stand of Jinhai Heavy Industry Co., during Marintec China in Shanghai, China, 29 November 2012. With orders for new

RM2CYTC7F–Chen Qiang, chief executive officer of China Rongsheng Heavy Industries, poses in an office after an interview with Reuters in Hong Kong July 19, 2011. China Rongsheng Heavy Industries Group Holdings Ltd, the country"s largest privately owned shipbuilder, will achieve or even exceed its $3 billion new order target in 2011, its chief executive officer, Qiang, said on Tuesday. To match interview RONGSHENG/ REUTERS/Tyrone Siu (CHINA - Tags: BUSINESS)

RMW91T3D–--FILE--A ship being built is seen at the shipyard of Jinhai Heavy Industry Co., on an island of Zhoushan Archipelago, southeast chinas Zhejiang provi

RM2HN0DAN–Zhangjiakou, China"s Hebei Province. 13th Feb, 2022. Liu Rongsheng (L) of China competes during the cross-country skiing men"s 4x10 km relay of the Beijing Winter Olympics at National Cross-Country Skiing Centre in Zhangjiakou, north China"s Hebei Province, Feb. 13, 2022. Credit: Wang Song/Xinhua/Alamy Live News

RM2HMN1WC–Zhangjiakou, North China"s Hebei Province. 11th Feb, 2022. Liu Rongsheng of China competes during the cross-country skiing men"s 15km classic of Beijing 2022 Winter Olympics at National Cross-Country Skiing Centre in Zhangjiakou, North China"s Hebei Province, Feb. 11, 2022. Credit: Deng Hua/Xinhua/Alamy Live News

RM2E65YM2–Chen Qiang, chief executive officer of China Rongsheng Heavy Industries, poses in an office after an interview with Reuters in Hong Kong July 19, 2011. China Rongsheng Heavy Industries Group Holdings Ltd, the country"s largest privately owned shipbuilder, will achieve or even exceed its $3 billion new order target in 2011, its chief executive officer, Qiang, said on Tuesday. To match interview RONGSHENG/ REUTERS/Tyrone Siu (CHINA - Tags: BUSINESS)

RM2HMN27W–Zhangjiakou, North China"s Hebei Province. 11th Feb, 2022. Liu Rongsheng of China competes during the cross-country skiing men"s 15km classic of Beijing 2022 Winter Olympics at National Cross-Country Skiing Centre in Zhangjiakou, North China"s Hebei Province, Feb. 11, 2022. Credit: Deng Hua/Xinhua/Alamy Live News

RM2D0R611–Chen Qiang, chief executive officer of China Rongsheng Heavy Industries, poses in a office after an interview with Reuters in Hong Kong July 19, 2011. China Rongsheng Heavy Industries Group Holdings Ltd, the country"s largest privately owned shipbuilder, will achieve or even exceed its $3 billion new order target in 2011, its chief executive officer, Qiang, said on Tuesday. To match interview RONGSHENG/ REUTERS/Tyrone Siu (CHINA - Tags: BUSINESS)

RM2CWWX07–A company logo is seen at the entrance of the Rongsheng Heavy Industries shipyard in Nantong, Jiangsu province December 4, 2013. China"s biggest private shipbuilder, China Rongsheng Heavy Industries Group, posted a second straight annual loss on March 31, 2014, as new orders were less than half its target, and is in talks with banks about loan repayments. Picture taken December 4, 2013. REUTERS/Aly Song (CHINA - Tags: BUSINESS MARITIME)

RM2HMN1W5–Zhangjiakou, North China"s Hebei Province. 11th Feb, 2022. Liu Rongsheng of China competes during the cross-country skiing men"s 15km classic of Beijing 2022 Winter Olympics at National Cross-Country Skiing Centre in Zhangjiakou, North China"s Hebei Province, Feb. 11, 2022. Credit: Deng Hua/Xinhua/Alamy Live News

RM2CXHEMX–Workers ride motorcycles and bicycles after their shifts at an entrance of the Rongsheng Heavy Industries shipyard in Nantong, Jiangsu province December 4, 2013. China"s biggest private shipbuilder, China Rongsheng Heavy Industries Group, posted a second straight annual loss on March 31, 2014, as new orders were less than half its target, and is in talks with banks about loan repayments. Picture taken December 4, 2013. REUTERS/Aly Song (CHINA - Tags: BUSINESS MARITIME)

RM2CXAP7K–Labourers stand on a new ship at a Rongsheng Heavy Industries shipyard in Nantong, Jiangsu province, in this file photo taken May 21, 2012. China Rongsheng Heavy Industries Group, the country"s largest private shipbuilder, posted its sharpest fall in half-year profit - down 82 percent - on a dearth of new orders, putting further pressure on its stretched balance sheet. Rongsheng warned on August 21, 2012, that economic uncertainties such as the euro zone debt crisis would continue to weigh on the global shipping market. Picture taken May 21, 2012. REUTERS/Aly Song/Files (CHINABUSINESS MARITI

RM2HMN21C–Zhangjiakou, North China"s Hebei Province. 11th Feb, 2022. Liu Rongsheng of China competes during the cross-country skiing men"s 15km classic of Beijing 2022 Winter Olympics at National Cross-Country Skiing Centre in Zhangjiakou, North China"s Hebei Province, Feb. 11, 2022. Credit: Deng Hua/Xinhua/Alamy Live News

RM2D07154–A view of the Rongsheng Heavy Industries shipyard is seen in Nantong, Jiangsu province, in this file photo taken May 21, 2012. China Rongsheng Heavy Industries Group, the country"s largest private shipbuilder, posted its sharpest fall in half-year profit - down 82 percent - on a dearth of new orders, putting further pressure on its stretched balance sheet. Rongsheng warned on August 21, 2012, that economic uncertainties such as the euro zone debt crisis would continue to weigh on the global shipping market. Picture taken May 21, 2012. REUTERS/Aly Song/Files (CHINA - Tags: BUSINESS MARITIME)

RM2HMN3MK–Zhangjiakou, North China"s Hebei Province. 11th Feb, 2022. Liu Rongsheng of China competes during the cross-country skiing men"s 15km classic of Beijing 2022 Winter Olympics at National Cross-Country Skiing Centre in Zhangjiakou, North China"s Hebei Province, Feb. 11, 2022. Credit: Hu Huhu/Xinhua/Alamy Live News

RM2HM9EFM–Zhangjiakou, China"s Hebei Province. 8th Feb, 2022. Liu Rongsheng of China competes during the men"s cross-country skiing sprint free qualification of the Beijing 2022 Winter Olympics at Zhangjiakou National Cross-country Skiing Centre in Zhangjiakou, north China"s Hebei Province, Feb. 8, 2022. Credit: Mu Yu/Xinhua/Alamy Live News

RM2HN20G7–Zhangjiakou, China"s Hebei Province. 13th Feb, 2022. Liu Rongsheng (L) and Wang Qiang of China compete during the cross-country skiing men"s 4x10 km relay of the Beijing Winter Olympics at National Cross-Country Skiing Centre in Zhangjiakou, north China"s Hebei Province, Feb. 13, 2022. Credit: Liu Chan/Xinhua/Alamy Live News

RM2E68M95–A view of the Rongsheng Heavy Industries shipyard is seen in Nantong, Jiangsu province, in this file photo taken May 21, 2012. China Rongsheng Heavy Industries Group, the country"s largest private shipbuilder, posted its sharpest fall in half-year profit - down 82 percent - on a dearth of new orders, putting further pressure on its stretched balance sheet. Rongsheng warned on August 21, 2012, that economic uncertainties such as the euro zone debt crisis would continue to weigh on the global shipping market. Picture taken May 21, 2012. REUTERS/Aly Song/Files (CHINA - Tags: BUSINESS MARITIME)

RM2HKXK7X–2022 Beijing Olympics - Cross-Country Skiing - Men"s 15km + 15km Skiathlon - National Cross-Country Centre, Zhangjiakou, China - February 6, 2022. Liu Rongsheng of China in action. REUTERS/Hannah Mckay

RM2HMMB79–2022 Beijing Olympics - Cross-Country Skiing - Men"s 15km Classic - National Cross-Country Centre, Zhangjiakou, China - February 11, 2022. Liu Rongsheng of China in action. REUTERS/Lindsey Wasson

RM2HN20T2–Zhangjiakou, China"s Hebei Province. 13th Feb, 2022. Shang Jincai (L) and Liu Rongsheng of China competes during the cross-country skiing men"s 4x10 km relay of the Beijing Winter Olympics at National Cross-Country Skiing Centre in Zhangjiakou, north China"s Hebei Province, Feb. 13, 2022. Credit: Liu Chan/Xinhua/Alamy Live News

RM2HMMAPC–2022 Beijing Olympics - Cross-Country Skiing - Men"s 15km Classic - National Cross-Country Centre, Zhangjiakou, China - February 11, 2022. Liu Rongsheng of China in action. REUTERS/Lindsey Wasson

RM2HMYH8D–2022 Beijing Olympics - Cross-Country Skiing - Men"s 4 x 10km Relay - National Cross-Country Centre, Zhangjiakou, China - February 13, 2022. Liu Rongsheng of China in action. REUTERS/Lindsey Wasson

RM2HN0D6W–Zhangjiakou, China"s Hebei Province. 13th Feb, 2022. Liu Rongsheng (R) of China and Antoine Cyr of Canada compete during the cross-country skiing men"s 4x10 km relay of the Beijing Winter Olympics at National Cross-Country Skiing Centre in Zhangjiakou, north China"s Hebei Province, Feb. 13, 2022. Credit: Hu Huhu/Xinhua/Alamy Live News

RM2HN214K–Zhangjiakou, China"s Hebei Province. 13th Feb, 2022. Antoine Cyr (L) of Canada and Liu Rongsheng of China compete during the cross-country skiing men"s 4x10 km relay of the Beijing Winter Olympics at National Cross-Country Skiing Centre in Zhangjiakou, north China"s Hebei Province, Feb. 13, 2022. Credit: Deng Hua/Xinhua/Alamy Live News

RM2HM92R3–Beijing, China"s Hebei Province. 8th Feb, 2022. Liu Rongsheng of China competes during the cross-country skiing men"s sprint free qulification match of Beijing 2022 Winter Olympics at Zhangjiakou National Cross-country Skiing Centre in Zhangjiakou, north China"s Hebei Province, Feb. 8, 2022. Credit: Wang Song/Xinhua/Alamy Live News

RM2FMJX8F–Altay, China"s Xinjiang Uygur Autonomous Region. 10th May, 2021. Liu Rongsheng of National Cross-Country Skiing Team competes during the men"s 15km mass start classic event at the FIS Cross-Country Skiing China City Tour in Sarkobu Cross-Country Ski Track, Altay City, northwest China"s Xinjiang Uygur Autonomous Region, May 10, 2021. Credit: Hou Zhaokang/Xinhua/Alamy Live News

RM2FMJX8B–Altay, China"s Xinjiang Uygur Autonomous Region. 10th May, 2021. Shang Jincai (L) and Liu Rongsheng of National Cross-Country Skiing Team celebrate after finishing the men"s 15km mass start classic event at the FIS Cross-Country Skiing China City Tour in Sarkobu Cross-Country Ski Track, Altay City, northwest China"s Xinjiang Uygur Autonomous Region, May 10, 2021. Credit: Zanghaer Bolati/Xinhua/Alamy Live News

RM2HP7A4F–Zhangjiakou, China"s Hebei Province. 19th Feb, 2022. Liu Rongsheng of China competes during the cross-country skiing men"s 50km mass start free of Beijing 2022 Winter Olympics at National Cross-Country Skiing Centre in Zhangjiakou, north China"s Hebei Province, Feb. 19, 2022. The men"s 50km cross-country mass start race on Saturday has been delayed by an hour to 1500 local time (0700 GMT) and shortened to 30km due to high winds at the National Cross-Country Skiing Centre. Credit: Hu Huhu/Xinhua/Alamy Live News

RM2HP6R28–Beijing, China"s Hebei Province. 19th Feb, 2022. Liu Rongsheng of China competes during the cross-country skiing men"s 50km mass start free of Beijing 2022 Winter Olympics at National Cross-Country Skiing Centre in Zhangjiakou, north China"s Hebei Province, Feb. 19, 2022. The men"s 50km cross-country mass start race on Saturday has been delayed by an hour to 1500 local time (0700 GMT) and shortened to 30km due to high winds at the National Cross-Country Centre. Credit: Liu Chan/Xinhua/Alamy Live News

RM2HP7GR8–Zhangjiakou, China"s Hebei Province. 19th Feb, 2022. Liu Rongsheng of China competes during the cross-country skiing men"s 50km mass start free of Beijing 2022 Winter Olympics at National Cross-Country Skiing Centre in Zhangjiakou, north China"s Hebei Province, Feb. 19, 2022. The men"s 50km cross-country mass start race on Saturday has been delayed by an hour to 1500 local time (0700 GMT) and shortened to 30km due to high winds at the National Cross-Country Skiing Centre. Credit: Mu Yu/Xinhua/Alamy Live News

RM2HP79RK–Zhangjiakou, China"s Hebei Province. 19th Feb, 2022. Liu Rongsheng of China competes during the cross-country skiing men"s 50km mass start free of Beijing 2022 Winter Olympics at National Cross-Country Skiing Centre in Zhangjiakou, north China"s Hebei Province, Feb. 19, 2022. The men"s 50km cross-country mass start race on Saturday has been delayed by an hour to 1500 local time (0700 GMT) and shortened to 30km due to high winds at the National Cross-Country Skiing Centre. Credit: Hu Huhu/Xinhua/Alamy Live News

RM2HP799D–Zhangjiakou, China"s Hebei Province. 19th Feb, 2022. Hadesi Badelihan (R) and Liu Rongsheng of China compete during the cross-country skiing men"s 50km mass start free of Beijing 2022 Winter Olympics at National Cross-Country Skiing Centre in Zhangjiakou, north China"s Hebei Province, Feb. 19, 2022. The men"s 50km cross-country mass start race on Saturday has been delayed by an hour to 1500 local time (0700 GMT) and shortened to 30km due to high winds at the National Cross-Country Skiing Centre. Credit: Liu Chan/Xinhua/Alamy Live News

RM2HP6W5G–Zhangjiakou, China"s Hebei Province. 19th Feb, 2022. Liu Rongsheng of China passes the finish line during the cross-country skiing men"s 50km mass start free of Beijing 2022 Winter Olympics at National Cross-Country Skiing Centre in Zhangjiakou, north China"s Hebei Province, Feb. 19, 2022. The men"s 50km cross-country mass start race on Saturday has been delayed by an hour to 1500 local time (0700 GMT) and shortened to 30km due to high winds at the National Cross-Country Centre. Credit: Deng Hua/Xinhua/Alamy Live News

RM2HP79F3–Zhangjiakou, China"s Hebei Province. 19th Feb, 2022. Wang Qiang (R) and Liu Rongsheng of China compete during the cross-country skiing men"s 50km mass start free of Beijing 2022 Winter Olympics at National Cross-Country Skiing Centre in Zhangjiakou, north China"s Hebei Province, Feb. 19, 2022. The men"s 50km cross-country mass start race on Saturday has been delayed by an hour to 1500 local time (0700 GMT) and shortened to 30km due to high winds at the National Cross-Country Skiing Centre. Credit: Deng Hua/Xinhua/Alamy Live News

RM2HP71XE–Zhangjiakou, China"s Hebei Province. 19th Feb, 2022. Wang Qiang (L) and Liu Rongsheng of China compete during the cross-country skiing men"s 50km mass start free of Beijing 2022 Winter Olympics at National Cross-Country Skiing Centre in Zhangjiakou, north China"s Hebei Province, Feb. 19, 2022. The men"s 50km cross-country mass start race on Saturday has been delayed by an hour to 1500 local time (0700 GMT) and shortened to 30km due to high winds at the National Cross-Country Skiing Centre. Credit: Mu Yu/Xinhua/Alamy Live 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.

Rongsheng Heavy Industries Group Holdings Ltd"s shares have been suspended on the Hong Kong Stock Exchange after a media report said that the company cut 8,000 jobs in recent months.

The Jiangsu-based company - China"s largest private shipyard - has been hit by a slowdown in the global shipping industry as well as sluggish domestic demand for new ships.

Last year, Rongsheng Offshore & Marine was established in Singapore to seek new market growth points. Its business segments include shipbuilding, offshore engineering, marine engine building and engineering machinery.

"In 2011, the market was so-so, but 2012 was bad and the situation this year is cruel," said Li Aidong, president of Daoda Heavy Industry Group, an 8,000-worker shipyard in Jiangsu.

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. [Provided to China Daily]

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.

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.

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.

The China Rongsheng Heavy Industries (RSHI) Group Holdings is a leading large-scale heavy industry conglomerate with operations covering shipbuilding, marine engineering, power engineering, construction machinery and other related fields. The China RSHI Group was successfully listed on the Main Board of The Stock Exchange of Hong Kong on 19th November 2010.

Liang studied for a Master’s in Corporate Management at Tongji University and undertook a period of work experience at Berlin Technical University. He is Deputy Treasurer at China Rongsheng Heavy Industries Group Holdings.

Rongsheng has a vertically centralised treasury structure. We have two production bases located respectively in Rugao, Nantong and Hefei, Anhui Province. The group headquarters are in Hong Kong and Shanghai, with treasury department composed of seven employees, responsible for FX and interest rate risk management, financing, cash management and bank relationship management.

Our main cash management banks include Bank of China, the Export-Import Bank of China and China Development Bank, which are also our biggest credit banks.

The ship-building industry differs significantly from ordinary manufacturing industries in that even a single product can have great value and the building cycle is very long. Therefore, during the building process the shipyard will authorise a bank to issue a refund guarantee to the ship-owner based on building milestones. Currently, the guarantee issuing banks that are most acceptable to overseas ship-owners are Bank of China, the Export-Import Bank of China and China Development Bank.

Meanwhile we also leverage the combined advantages of different banks, such as the trade financing of Bank of China, the project loans of China Construction Bank, and the project mortgage of China Everbright Bank.

Due to the nature of our industry, we are not able to physically pool our cash yet, because most of our collections have to be swept to the specified account of ship-building business. However, we do use centralised management to get a real-time understanding of group cash position and future cash flow.

HONG KONG/BEIJING, July 8 (Reuters) – An appeal for government financial support from China’s biggest private shipbuilder presents authorities with some stark choices between protecting a big employer and its jobs or letting the firm go under to ease pressure on a sector suffering from overcapacity and sharply falling new orders.

Since Beijing appears intent on telling investors it is serious about changing the investment-led growth model of the world’s second-biggest economy and controlling a credit splurge, it may seem like the writing is on the wall for China Rongsheng Heavy Industries Group.

Yet analysts say the government is more likely than not to judge that Rongsheng, which employs around 20,000 workers and has received state patronage, is too big and well connected to fail.

Supporting Rongsheng will not mean China’s economic reform plans are derailed, they say. Instead, it will mean reforms will be gradual and the government will cherry-pick firms it wants to support, which will exclude the small, private shipbuilders that have been folding in waves.

“Rongsheng is a flagship in the industry,” said Lawrence Li, an analyst with UOB Kay Hian in Shanghai. “The government will definitely provide assistance if companies like this are in trouble.”

Analysts say Rongsheng is possibly the largest casualty of a sector that has grown over the past decade into the world’s biggest shipbuilding industry by construction capacity. Amid a global shipping downturn, new orders for Chinese builders fell by half last year. In Rongsheng’s case, it won orders worth $55.6 million last year, compared with a target of $1.8 billion.

Rongsheng appealed for government aid on Friday, saying it was cutting its workforce and delaying payments to suppliers to deal with tightened cash flow.

In the prospectus for its initial public offer, Rongsheng said it received 520 million yuan of subsidies from the Rugao city government in the southern province of Jiangsu, where the company is based.

The state funds paid for research and development of new types of vessels, and were based in part on the “essential role we play in the local economy”, Rongsheng said.

Suntech Power Holdings, a solar panel maker also based in Jiangsu, is waiting to be bailed out by the government after it was crushed by falling demand and a supply glut, a source with knowledge of the matter said in March. The government wants to find a way to rescue Suntech to avoid an embarrassing collapse that damages its reputation, the source said.

China’s shipbuilding woes are partly of its own making. A global downturn in demand has hammered the sector since 2008, but a national obsession for global dominance in some industries led China to declare in the early 2000s that it wanted to be the world’s top shipbuilding nation by 2015.

As the world’s largest shipbuilder, it had 1,647 shipyards in 2012, data from China Association of the National Shipbuilding Industry showed. Over 60 percent of its shipbuilders are based in Rongsheng’s province of Jiangsu.

The rapid increase in capacity combined with a global shipping downturn is now taking its toll. A fifth of China’s shipbuilders lost money in 2012, data from the association of shipbuilders showed, nearly doubling from 2011.

Despite this, the government is providing support for the industry, a sign it will also support Rongsheng given its prominence in the sector, analysts said.

Export-Import Bank of China, which lends in support of government policy goals, said in January it will increase lending for the buying or leasing of ships by around $3 billion this year to support Chinese shipbuilders.

Beijing also devised a plan last year to subsidise early disposal of ships in use for over 15 years, with the state paying for 20 percent of the cost incurred, the Economics Information Daily, a newspaper run by state news agency Xinhua, said this month. The paper said the plan had not been announced due to conflicting views. It was not clear if China’s new government had vetoed the plan designed by their predecessors.

Just last week Premier Li Keqiang said the government wanted to bring about orderly closures of some factories plagued by overcapacity. A statement from the State Council, or cabinet, did not specify any particular industries or companies.

Analysts say what separates Rongsheng from many other companies are its connections with the government and state banks. Rongsheng’s Chief Executive Chen Qiang, for example, enjoys “special government allowances” granted by China’s cabinet, the firm’s annual reports say.

Rongsheng also said in its IPO prospectus that it has two five-year financing deals with Export-Import Bank of China that end in 2014 and in 2015, and a 10-year agreement with Bank of China starting from 2009.

After all, local government coffers will suffer the biggest blow if Rongsheng goes bust. The firm had 168 million yuan of deferred income taxes in 2012.

HONG KONG, May 24, 2011 /PRNewswire-Asia/ -- 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, has collaborated with China National Offshore Oil Corporation ("CNOOC") to construct the world"s first-ever 3,000-meter deepwater pipe laying crane vessel ("DPV") "Ocean Pec 201". A national major science and technology project conference and a christening ceremony to celebrate the completion of the vessel were held in Rugao City, Jiangsu today.

The DPV "Ocean Pec 201" was the culmination of the first joint offshore engineering project of CNOOC and China Rongsheng Heavy Industries. The project started in May 2005 and construction of the vessel commenced in September 2008. Offshore Oil Engineering Co., Ltd. ("COOEC"), a listed company held by CNOOC, was responsible for all construction cost as well as the operation upon completion. The christening ceremony today symbolised that the construction of the DPV has completed the outfitting and testing stages and is at the final stage of trial voyage and delivery.

Guests including top management of China Rongsheng Heavy Industries and its partners together with leading officials of the local Government presided over the occasion and officiated at the ribbon-cutting ceremony. Business executives included Mr. Zhou Shouwei, Vice President of CNOOC and academician at the Chinese Academy of Engineering; Mr. Zhou Xuezhong, President of COOEC; Mr. Zhang Dehuang, Chairman of Jiangsu Rongsheng Investment Group Co. Ltd; Mr. Chen Qiang, Chief Executive Officer of China Rongsheng Heavy Industries and Mr. Chen Guorong, President of Jiangsu Rongsheng Heavy Industries Co., Ltd. Local officials included Mr. Qinyan from the Jiangsu Economic and Information Technology Commission and Ms. Chen Huijuan, Deputy Mayor of Nantong & Secretary of Rugao Municipal Committee of the Communist Party of China.

Mr. Chen Qiang, Chief Executive Officer and Executive Director of China Rongsheng Heavy Industries, said, ""Ocean Pec 201" is an important part of the demonstration engineering projects. It includes major equipment and ancillary engineering technology for offshore deepwater engineering projects among the major national science and technology programmes under China"s Eleventh Five-Year Plan. The entry of CNOOC in deep water exploitation creates opportunities for the offshore engineering sector in China and enhances the overall capability of the related manufacturing and metallurgy industries in China. The christening and impending trial voyage of the semi-submersible drilling rig "Ocean Pec 981" and DVP "Ocean Pec 201" highlights China"s ability to develop sophisticated equipment in the offshore engineering sector and its competitiveness in the international market."

"Ocean Pec 201" is the world"s first deepwater pipe laying crane vessel featuring 3,000-meter deepwater pipe-laying, 4,000 tonnes of lifting capacity and DP-3(1) dynamic positioning capability(2). The vessel is able to operate in any navigable area globally except for the Arctic regions. It is equipped with a series of advanced equipment including electric propulsion, VF electric drive, DP-3 dynamic positioning, "S" type deepwater dual node pipe-laying system as well as a 4,000-tonne heavy offshore crane. The vessel was designed and built in China. With a crew of 380, it is the first offshore engineering vessel in Asia and China