State-owned China Shipbuilding Industry Corp (CSIC) arguably plays the role of primary contractor in China’s naval force. It has completed basic work on design and research of a dual-fuel container ship, which is designed to carry 20,000 twenty-foot-equivalent-unit container, according to high-profile executive from the company.
The ship is designed to use a dual-fuel engine and can use LNG for conversion from chemical energy to mechanical energy. As LNG is cleaner when burns, this kind of dual-fuel container ship has found acceptance of and popularity with shipping companies who’d like to adhere to international laws and regulations concerning environment protection.
In addition, CSIC will release a three-year plan for building high-end ships, products for offshore engineering and brand presence in the world, especially in markets that are involved in the Belt and Road Initiative, said Hu Wenming, the group’s chairman.
Hu also said, CSIC will avoid orders that present no profitability and better deploy its resources to produce high-end products, for example, intelligent offshore ocean farming facilities, deep-water semi-submersible drilling platforms. Low-end ships and offshore engineering products will see declining demand in global markets.
2018 has witnessed an increase of 4.9 percent year-on-year in the group’s sales revenue, bringing the figure to 315 billion yuan($46.77 billion), in which, net profit claims 8.86 billion yuan, a surge of 33.5 percent from the previous year.
Established in 1999 and headquartered in Beijing, CSIC’s marine sector covers naval and merchant ships, and equipment production. On top of that, the group also engages in design, development and manufacturing of a varied-range of non-marine equipment.
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In order to realize a better integration of civilian and military businesses, the group will speed up the cultivation and expansion of its civil-military integration, with focus on maritime defense, national energy security and ecological protection and etc.
Business shifts have happened at big shipyards, with a part of the business being shifted to new materials, mechanical and electrical equipment.These sectors are more profitable, and less competitive, as there are not so many shipbuilders who are capable of manufacturing these sophisticated equipment.
The marine economy has many sectors, such as ocean power, seawater use, marine tourism, which need different kinds of vessels, the traditional bulk ships and ore carriers are no longer dominants in marine transport system.
CSIC has a workforce of over 170,000 and over 50 industrial subsidiaries and 29 research institutes across the country. Its various kinds of vessels are exported to over 70 countries and regions, as near as Thailand and Malaysia, and as far as Norway.