China Rongsheng Heavy Industries receives 10+10 Suezmax Tankers Order

8 December 2011

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 announced that it has received a 10+10 157,000 DWT Suezmax tankers shipbuilding order from Global Union Shipping Limited (“China Rongsheng Heavy Industries”). The order further consolidates the position of the Group as the largest Suezmax shipbuilder in China and the world’s second largest. It also clearly demonstrates the capability of the Group to achieve continuous and steady growth.

Mr Chen Qiang, Chief Executive Officer and Executive Director of China Rongsheng Heavy Industries, said, “The new order not only boosts the Group’s orderbook of shipbuilding segment, but also consolidates our leading position in the global Suezmax shipbuilding market. China Rongsheng Heavy Industries has managed to secure a series of new shipbuilding orders despite the unfavorable market situation. Such a substantial order clearly demonstrates the capability of the Group to achieve continuous steady growth.”

Within the six years since its establishment, China Rongsheng Heavy Industries has already successfully delivered about 30 Suezmax tankers. With an overall length of 274.5 meters, a breadth of 48 meters and scantling draught of 17 meters, the Rongsheng-type Suezmax is based on the design of a typical 156,000 DWT Suezmax with Group’s value-added enhancements and optimisation. . The EEDI performance and product quality of these tankers have been well-recognised by shipowners worldwide.

The contract signed with Global Union Shipping includes 10 confirmed orders and options to build as many as 10 more. These vessels are to be delivered between the year-end of 2013 and 2014. As at today, the Group has received new orders for more than 40 vessels, with a total contract value exceeding USD 2 billion, in 2011. This represents a significant achievement in a depressed shipbuilding market.

Mr Chen concluded, “The global economy is volatile and adding uncertainties to the shipbuilding industry worldwide as the industry undergoes a structural change in the future. The market for LNG carriers and large-scale offshore engineering equipment should remain active, while shipowners would favour new vessel types which meet international shipbuilding standards. Thus, China Rongsheng Heavy Industries is now devoting resources to the R&D of high-value added vessel types, so as to cope with market changes and enhance its development with high-tech high-value added products.”

Rongsheng press release