CSSC plans new shipyard

Despite the collapse in the newbuilding market, state-owned Chinese shipbuilder China State Shipbuilding Corporation (CSSC) is planning to invest up to Yuan10bn ($1.5bn) to build a shipyard in Zhongshan , Guangdong province.
The project is located adjacent to the Zhongshan Industrial Development Zone, with a total land area of 4,800 acres. The project is expected to generate as much as Yuan30bn in revenues for CSSC per year 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. "The project will be developed in phases, with the first phase scheduled for operation as early as the first half of 2010," Zhou said.
The first phase of the shipyard is designed for block assembly and the second phase will be used for building containerships, ropax vessels, tankers, chemical tankers and offshore vessels of up to 100,000 dwt.
China Everbright Research transportation analyst Rick Leung said despite the fact that the Chinese shipbuilding industry is suffering from order cancellations, it would not affect the expansion of large players such as CSSC due to their strong financial position.