Developing Strategies of Shipbuilders in the Market Downturn

1
?????????????? Developing Strategies of
Shipbuilders in the Market Downturn
? ? / Chen Qiang
29-04-2009/ Shanghai
2
? ? Content
3
??????? 2008 China Shipbuilding Outlook

• 2008?,?????????2881????,??????29.5,???????5818???
  ?,??????37.7,??????2????,??????35.5???2009??????
  ???4000??????,??????????????
• 2008, Chinas accomplished shipbuilding
  output reached to 28.81 million DWT, accounting
  for 29.5 of the worlds total New orders
  58.18 million dwt, accounting for 37.7 Order
  book 200 million dwt, accounting for 35.5. It
  is expected that accomplished shipbuilding output
  in 2009 will reach to more than 40 million DWT,
  but the new orders will drop substantially.

• ???,?????????????4000??,????????200?,???6000????,?
  ?????,??????
• So far, China has about 4,000 shipyards,
  but most are of small scale except abt. 200 ones
  and. And the total production capacity is about
  60 million dwt, which exceeds market demands. On
  the other hand, China is lack of comprehensive
  and hi-level shipyards.

4
?????????? Rapid Development of Jiangsu
Shipbuilding
??????????????? / Jiangsu shipbuilding ranks the
first in China
?????????????????????,2008????????????????????????
???????? Jiangsu shipbuilding industry which
mainly represents private shipbuilding industry
of China, develops quickly these years, and its
three indices have ranked first domestically in
2008.
????????????????
5
?????????? Rapid Development of Jiangsu
Shipbuilding
?????????????? / Jiangsu is the leading
shipbuilding province in China

6
????????????? China Stimulus Plan for
Shipbuilding Industry

• 2009?2?,???????????????????
• ????????,??????????, ????????
• ??????,???????????,????????,?????????
• ??????,????????
• ?????????????????????
• Layout of the stimulus package
• Upgrading the structure of shipbuilding industry,
  strengthening the capability of large-scale
  shipbuilders.
• Exploiting high value-added products, developing
  offshore engineering
• Focusing on technical Improvement, and enhancing
  innovative ability
• Encouraging financial institutions to give more
  support on Buyer's Credit

7
? ? Content
8
????,?????? Business Upgrading

• ??????????????,????,????,???????????,??????,??????
  ???????????????
• Take opportunity of China Stimulus Plan of
  Shipbuilding Industry, enhance the technology
  upgrading and product innovation, make brand
  well-know in both scale and capability, to be a
  world-class comprehensive corporation in marine
  and offshore fields.
• ????????????????????
• March towards high value-added vessels and
  offshore engineering
• ???????????????,???????????
• Improve management level and efficiency by
  implementing CIMS
• ????????????????
• Sourcing well-experienced talents globally and
  extending win-win cooperation
• ?????????????,??????
• Take full use of financial policy such as
  buyers credit

9
????,?????? Business Upgrading
1. ?????????? / March towards market of high
value-added vessels
???????????? LPG?LNG???,??????,??????,?????? RSH
I is now on actively research and development of
LPG, LNG carriers, large-scale Ro-Ro vessel to
optimize product mix ????????????????????,???????
????,????????? Breakthrough key technology by
cooperating with classification societies and
research institutes home and abroad as well as by
Independent research and development and
technical digest.
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????,?????? Business Upgrading
2. ????? / March towards offshore
engineering
?????????????49????,??160????,???1400m,?????????
?????????????????????40? RSHIs total
investment on O.E. project is about RMB five
billion . The occupying area is 1.6 million
square meters with coastline of 1400 meters. It
is the key constructive project in provincial
Eleventh Five-year Plan of Jiangsu. The capacity
of O.E. will contribute 40 to the total output
of whole company.
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????,?????? Business Upgrading
2. ????? / March towards offshore
engineering

• ?????????????????????
• RSHI has established O.E.SBU and O.E. Technical
  Center.
• ????????????1600?,???????????200??,????6?,??16?,??
  ??40?,????15?,????????????4??
• Now the O.E. SBU has about 1,600 employees, 200
  well-experienced workers, 6P with Phd degrees,16P
  with Master Degree, 40P with middle level
  technical title, 15P with senior technical title,
  and 4 experts enjoying special allowance of the
  State Council.

12
????,?????? Business Upgrading
3. ???????? / Offshore products under
construction

• ???3000m????????? / 3,000 m deepwater pipelay
  vessel for CNOOC
• ????????????????,??????????????????????,??08
  ?9??????
• It is the first offshore engineering project and
  it was steel-cutted in September of 2008.

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????,?????? Business Upgrading
3. ???????? / Offshore products under
construction

• ???????? / Drilling modules of CHUNXIAO

14
????,?????? Business Upgrading
4. ???????????? / Offshore products in three
fields

• ??????????????? / Drilling units
• FPSO?FSO?????/???? / FPSO?FSO
• ??????????????????????
• Pipelay vessels ?Semi-submersibles?
  offshore supply vessels, etc.

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??????,?????? Extend Customer Service with
Buyers Credit
??????????????????????????????????????????????
??,??????????????,?????????????,??????????????? Ta
king use of buyers credit support of China
according to Stimulus Plan, RSHI actively
promote the cooperation between banks and
shipowners.

??????BLUMENTHAL???????? ?????? Discussion on
Buyer's Credit between BLUMENTHAL and China EXIM
Bank
?????????????????? ???????? Discussion on Buyer's
Credit between CVRD and China EXIM Bank
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??????,?????? Extend Customer Service with
Buyers Credit
????????????????? / Good relationship with many
banks on buyers credit

• ????????? ?????????????????????????????????????,?
  ????????????????
• RSHI has established strategic cooperation with
  most Banks on buyers credit, such as Bank of
  China, China EximBank and National Development
  Bank

17
??????????? First-class Quality Leading to RSHI
Brand
?????????7.55??????????,????????? RSHIs
ice-strengthened panamax bulk carrier ( 75.5K
DWT) was awarded the New Record of Chinese
Enterprises.
?????????CSR???????,???????????????????? RSHIs
Suezmax Oil Tanker with CSR was delivered with
high praises from both ship-owners and
classification societies.
18
??????????? First-class Quality Leading to RSHI
Brand
????????,?? ?????? / Cooperation with
Classification Societies

• ????????DNV???ABS???LR???GL????????????,??????????
  ??????????????
• RSHI has established strategic cooperation with
  four classification societies DNV, ABS, LR and
  GL, and has gained extensive support in ship
  classification, R D, and staff training.

19
??????????? First-class Quality Leading to RSHI
Brand
???????? / Total Quality Management

• ???????????????????,???DNV?LR?ABS?GL??????????
• RHSI has set a standardized "quality
  standards for ship construction which has been
  approved by six major classification societies
  such as DNV, LR, ABS and GL.
• DNV??????????????????,?????????????????????
• DNV has set up a joint training center in
  RSHI as the training base for the QA persons of
  RSHI.

20
??????????? First-class Quality Leading to RSHI
Brand

• ?????????,???????? / Continuously improve quality

21
??????????? Talents Sourcing

• ???????????????????????,????????????
• ????,?????????????????????????????????????????????
  ???1400???????9???????????????,???????????????????
  
• So far, RSHI has attracted more than 1400
  shipbuilding talents from Shanghai, Jiangsu,
• Singapore, Korea, Greece, Canada Hongkong,
  etc. RSHI also brought in 9 experts who enjoy
  special allowance of the State Council.

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????????? RD driven development

• ???????????????? / Organization Structure of RD
  Institute

23
????????? RD driven development

??????,?????? / RD and innovation

• ????,????????????2????
• 2008?4?,?????????????????, ???????????
• 2009?3?,????????????????
• RSHI has invested RMB 200 million in RD so far.
  April, 2008, RD Institute of RSHI was titled
  Provincial Ship Research Department of Jiangsu.
  March, 2009, Postdoctoral Program Workstation
  of RSHI was also titled.

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????,???? Cooperation with Universities

• ??????????????????????????????????????,???????????
  ???????????????,??????????????????????,??????????
  ,???????????,??????,??????
• ??????????????????????
• RSHI has established strategic cooperation
  with Shanghai Jiao Tong University, Harbin
  University, and Jiangsu University of Science and
  Technology, Tsinghua University in product RD,
  technique innovation, HR training, etc.

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?????????? Upgrade Management by CIMS
??????????,???5000???,???AVEVA
(TRIBON??)?LOGIMATAC(MARS??)?ORACLE(????????)?????
??????,??????????????????????????????????
By cooperation with AVEVA, LOGIMATIC, ORACLE,
etc. RSHI focuses on jointly developing an
CIMS suitable for Chinese shipbuilders that
combines design, manufacturing, planning,
purchase and finance.
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??????,?????? Enhance Technical Innovation to
upgrade Shipbuilding Mode

• ?????????????,?????????,???????????/RSHI set up
  Methodology Div to research new shipbuilding
  technology
• ????????,????????????/Virtual shipbuilding tech.
• ??????????,???????????????/ Huge block assembling
  tech.
• ???????????????,??????/Joining sections afloat
  in dock tech.
• ????????????,?????? Shaft alignment in dock tech

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???????? prolonging industry chain towards
upstream
??????????? / Low-Speed Marine Diesel Engine
Program 

??????????????,??????????????,??MAN BW? Wartslia
??,???????500???,????????????? RSHI has been
approved by NDRC to establish a large-scale
diesel engine production base in Hefei. Its
capacity is abt five million Hp per year with
Wartslia and BW licensed engine. five million
horsepower. The first main engine will be
delivered in the end of this year.
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? ? Content
29
? ? Great Changes
2005.10 ?????????????????? A new shipbuilding
star was borne in the greenfield
2009.04 ????????????? A modern shipyard stands
spectacularly
30
?????? Corporate Profile
?????????????????????????????120?,?????600?m2,???6
???????15000???????????????????????800????,???????
100???? RSHI is a world-class shipbuilding
corporation approved by NDRC. The total
investment is about RMB 12 billion. RSHI has the
area of 6 million square meters with coastline of
nearly 6 Km and 15,000 employees. It has the
first-class shipbuilding facilities and equipment
with an annual output of 8 million tons and 10
billion US dollars per year.
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?????? Corporate Profile

• ????????? / Organization Structure of RSHI

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???? Core Facilities

• ????4?/Four docks102465m?102530m?106530m?13
  9.5580m
• 900????4? / Four 900-T gantry cranes

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2008????? Achievements in 2008

• ??????????????????????????????????,????????,??????
  ????,???????
• The orders on hand includes carrier,
  tanker,
• containership and offshore engineering.
  According to Clarkson, RSHI has ranked 2nd
  domestically and 6th globally so far in terms of
  orders on hand.
• 2008?8?,?????????12?40??????????,?????????????????
  ?????
• In August 2008, RSHI get the order of 12
  pcs 400,000-ton VLOC with CVRD.

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?????? Strategic Plan
??????????????????????????,????????????????
Guided by the Three Five-year plan, RSHI keeps
approaching its great long-term goal of
cultivating world -class employees and creating
world -class enterprise.
Exceeding, exploration, becoming world leading
enterprise
Innovation, development, Becoming international
first-class shipbuilder
Construction, consolidation, Becoming Chinese
leading shipbuilder
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? ? Epilogue
????? ?????????? We hold no pains, no gains
as our belief. ????? ??????????? We are in
pursuit of building world-class marine and
offshore products. ????? ???????????,???????!
RSHI will stand on China as well as the world.
Add No.1 Shugang Rd, Rugao,Jiangsu,China P.C.
226532 Tel [phone]
Fax[phone] Emailrongsheng_at_rshi.cn
http//www.rshi.cn
Thank You !