State-owned Chinese shipbuilder China State Shipbuilding Corporation is planning to invest up to RMB 10 billion ($1.5billion) to build a shipyard in Zhongshan, Guangdong province.
The project is located next to the Zhongshan Industrial Development Zone, with a total land area of 4,800 acres. The project is expected to generate as much as RMB 30 billion in annual revenues for CSSC once it is fully operational.
Zhongshan Industrial Development Zone deputy managing director Zhou Xi said the shipyard is the key project for CSSC in Guangdong because the province is a major shipbuilding hub in southern China.
CSSC has a strong presence in Guangzhou, the capital city of Guangdong province. Guangzhou Shipyard International, Guangzhou Huangpu Shipyard and Guangzhou Wenchong Shipyard are all under the umbrella of CSSC.
When up and running, the shipyard will be used for building containerships, ropax vessels, tankers, chemical tankers and offshore vessels of up to 100,000 dwt.
The Financial Daily reported cancellations have continued to grow at Chinese shipyards, with a total of 44 cancellations in the first four months of the year.
Land reclamation for the new shipyard has already started and the first phase has been contracted to CCCC TDC Southern Communications Construction, a wholly-owned subsidiary of CCCC Tianjin Dredging.