Rongsheng invests heavily in offshore sector

Jiangsu Rongsheng Heavy Industries (JRHI), the Chinese private shipbuilder, plans to invest up to Yuan2.4bn ($352m) to build an offshore parts yard and ship design institute in Nantong.

President of the yard, Chen Qiang, said the facilities would provide technical support to local shipyards, including Jiangsu Rongsheng itself. The Chinese government’s shipping stimulus package has urged local shipbuilders to focus on high value-added sectors to tackle the dearth of newbuilding orders.

Chen previously said the company had earmarked Yuan5bn to expand its offshore business and the company is targeting this market to account for 40% of total revenue in the long term.

A Nantong official said more than 10 shipyards in the city had made forays into the offshore business. The municipal government planned to promote Nantong as an offshore engineering hub, and expected the total value of the city’s offshore business to reach Yuan16bn, he said.