China Rongsheng Heavy Industries and Oman Shipping
christen two 380,000 dwt VLOCs

The third VLOC successfully delivered to vale accordingly enhancing construction and delivery plan of VLOCs

Hong Kong, 21 May 2012

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, today christened the first two 380,000 DWT Very Large Ore Carriers (“VLOC”) built for Oman Shipping Company S.A.O.C. (“Oman Shipping”). The vessels will set for sea trial and enter into the final delivery stage soon. In addition, the Group has also delivered the third 380,000 DWT VLOC to Vale S.A. (“Vale”) on 20 May. With the ongoing advances in construction experience and technologies, plus the improvement of production efficiency, the construction and delivery plan of VLOCs is further enhanced accordingly.

Mr. Chen Qiang, Executive Director and Chief Executive Officer of China Rongsheng Heavy Industries, said, “Oman Shipping and Vale are the important strategic partners of China Rongsheng Heavy Industries. The christening of the two vessels has reiterated the close and smooth partnership between the three parties. The advances in construction experience, technologies and production efficiency have also further enhanced the construction and delivery plan of VLOCs.”

H.E. Dr. Ahmed AI Futaisi, Vice Chairman of Oman Shipping; Ms. Chen Huijuan, Secretary to the Municipal Communist Party Committee of Rugao City; Mr. Claudio Alves, Global Marketing Director of Vale; and Mr. Chen Qiang, Executive Director and Chief Executive Officer of China Rongsheng Heavy Industries attended the christening ceremony today. The two VLOCs were christened as “VALE SOHAR” and “VALE LIWA,” in the names of two places in Oman. Sohar is the largest port in Oman, and which consists of a newly-completed berth to accommodate 380,000 DWT VLOCs.

Through the experience accumulation during the construction process of delivered vessels, the Group has achieved significant improvement for the construction cycle of VLOCs. Construction period of some of the critical process has been substantially reduced. A noteworthy example is that the time of installing the main engine after launching has been shortened to 20 working days.

Moreover, China Rongsheng Heavy Industries have just delivered “VALE DALIAN”, which is the third VLOC delivered by the Group, to Vale on 20 May. The vessel is also the second VLOC, after delivering “VALE DONGJIAKOU” on 9 April, taken by the Brazilian mining giant this year. Vale is always an important strategic partner of China Rongsheng Heavy Industries. With more VLOCs being delivered, it clearly demonstrates the close and smooth partnership between the Brazilian mining giant and the Group.

After signing shipbuilding contracts for twelve 380,000 DWT class VLOCs with Vale in 2008, the Group signed to build another four 380,000 DWT class VLOCs, with a contract value of USD 480 million, for Oman Shipping in 2009. The contract with Oman Shipping was regarded as the shipbuilding contract in the world in terms of tonnage. The four VLOCs are decided to charter to Vale, in supporting the operation of Vale’s ore distribution center in Oman.

The 380,000 DWT class VLOC, built by China Rongsheng Heavy Industries, is the largest dry bulk carrier in the world. The vessel measures 360 meters in length, 65 meters in breadth and 30.4 meters in depth. The VLOC adopts an environmentally friendly design to lower oil consumption and reduce emission of SOx and NOx, while the operating efficiency is also better than most of the existing ore carriers.

Rongsheng press release