?K? Line invests in new Chinese ship yard

Kawasaki Kisen Kaisha, Ltd. (“K” Line) in Japan has reached an agreement with the holding company of Titan Quanzhou Shipyard Ltd. (TQSL), a shipyard under construction in a suburb of Quanzhou City, Fujian Province, PRC by Titan Petrochemicals Group Ltd., for “K Line to become a primary strategic partner in ship repair business by purchasing convertible securities (equal to 5% of the outstanding number of shares).

TQSL is located in a suburb of Quanzhou City, Fujian Province, occupying total area of 110ha with 3,600m length of shoreline. When completed in 2010, it will be the largest repair dock in China with capacity of 250 vessels per year, equipped with four ultra-large dry docks (two of which can accommodate 300,000 dwt VLCC or VLOC), two slipways, ten repair berths, painting workshop and mechanical-electrical workshop.

TQSL project commenced in 2004, aiming to be a shipyard based on repair, newbuildings and offshore engineering, and since operation in 2006 with its first newbuilding, it has delivered four 7,000-9,000 dwt class bunker-tankers. Repair operations will commence in mid-2009 at repair berths as floating dock and will be in full operation from 2010. As a strategic alliance partner, “K” Line has secured repair slots for its growing fleet, especially for large-sized vessels. TQSL, which is located near Quanzhou, Fujian Province enjoys warm-weather throughout the year and will accommodate all types of vessels while maintaining an extremely high utilization ratio.

With “K” Line obtaining core repair slots at TQSL, in addition to the seafarer training centre in the Philippines opened in February this year, the company will be even better positioned to pursue enforcement of its safety policy and stable quality of ship management.