Construction started Friday on what will become the world's
largest shipyard, marking a major step forward in China's ambition
to become the world's leading ship builder.?
In the first phase of the US$3.6 billion project, the Jiangnan
Shipyard Corp, a subsidiary of China State Shipbuilding Corp (CSSC), is
relocating to Changxing Island to make way for Shanghai Expo
2010.
The Jiangnan Shipyard will expand its shipbuilding capacity from
the current 800,000 deadweight tons (DWT) a year to 4.5 million by
2010.
The yard's first ship is expected to be delivered by 2009.
In the second phase of development, CSSC's subsidiaries, such as
Hudong and Waigaoqiao, will add more yards along Changxing Island's
8-kilometer coastline.
By 2015, CSSC is expected to have an annual capacity of 8
million DWTs, half of China's current production capacity.
By then, Changxing is expected to have become the world's
largest shipyard.
Shanghai will also become the world's largest shipbuilding base,
tripling its capacity to 12 million DWTs by 2015.
"The central government has called on China to become the
largest shipbuilder in the world. The Changxing base is the most
important step forward in this plan," said CSSC General Manager
Chen Xiaojin on Friday.
The shipbuilding industry is valuable to the Chinese government
as it promotes domestic manufacturing and machinery industries,
creates job opportunities and revenue, and improves the country's
naval capability.
The country's shipbuilding industry has achieved an annual
average growth of 17 percent over the past few years and China now
accounts for a quarter of the world's shipbuilding market, up from
less than 5 percent five years ago.
Japan and South Korea each account for one third of the global
shipbuilding market.
"With the construction of Changxing we are breathing down the
necks of Japan and South Korea," said Xu Lunfang, senior engineer
at CSSC's Chengxi Shipyard. "The market competition is set to
intensify."
Chen Xiaojin said the Changxing yard offers CSSC an
unprecedented opportunity to develop its business as the global
shipbuilding market is still expanding.
The yard will also increase Chinese production of high-tech and
high-value-added ships, including liquefied natural gas carriers
and super oil tankers.
Friday also witnessed the 140th anniversary of the Jiangnan
Shipyard.
The yard was founded during the late Qing Dynasty (1644-1911),
and was the first manufacturing base to produce steel, naval ships
and steel cannon.
(China Daily June 4, 2005)