The Cosco Shipyard Group (CSG), a subsidiary of the China's largest shipyard group - China Ocean Shipping Group, plans to spend six billion yuan (S$1.2 billion) to expand capacity, including the building of a new shipyard in Dalian. It secured state approval for a two billion yuan plan last month for its Nantong facility and is now seeking the nod for a four billion yuan project in the northern port city of Dalian.
The new shipyard will have a capacity of about 2.5 million deadweight tons and will supplement the group's existing facilities at the Cosco (Dalian) Shipyard. Cosco Dalian will inaugurate a new VLCC (very large crude carrier) floating dock in late October 2005. With a 300,000 dwt capacity and a lifting capacity of 65,000 tonnes, it will be the largest floating dock in the world. The combined Nantong yards are aiming to build container ships, bulk carriers, car carriers, oil tankers and ultimately LNG (liquefied natural gas) carriers.
Further expansion already on CSG's books includes a 500,000 dwt drydock at the group's Zhoushan shipyard, slated for completion by 2006/2007. China is aiming to be among the world's largest shipbuilders. Last year, its share of global newbuilding orders rose two percentage points to 17 per cent, amounting to nearly 8.5 million dwt.