Chinese state run shipbuilding conglomerate China Sate Shipbuilding Corporation (CSSC) is planning to invest RMB15bn ($2.3bn) in total in the next five years to develop its affiliate shipyard Guangzhou Longxue Shipbuilding, Dong Qiang, president of CSSC said at a government meeting in Guangzhou yesterday.
Dong said the group will further expand Longxue Shipbuilding into a comprehensive shipbuilding and offshore equipment base with an annual capacity of 10m dwt.
The phase one project will use RMB4.5bn ($691m) to develop two 500,000dwt docks which will add 2.12m dwt capacity to the shipyard.
According to Dong, currently the total shipbuilding capacity in Guangzhou is about 6.5m dwt, and 70% of the capacity is controlled by the government. The group will also keep integrating the shipyards in Guangzhou through mergers and acquisition to optimize the shipbuilding capacity in the city.