Global shipbuilding capacity is expected to see a 1 per cent increase with the reopening of one of the well-known shipyards that survived the last shipping boom and bust cycle.
China's once largest private shipbuilder, Jiangsu Rongsheng Heavy Industry, is set to reopen soon and Mediterranean Shipping Company (MSC), the world's largest container shipping company, will be one of its first customers, Splash reported, citing MB Shipbroking (formerly Maersk Brokerage).
According to the broker, Rongsheng has secured funding and won contracts for a series of 12,000 TEU liquefied natural gas (LNG) dual-fuel vessels from MSC, which is already looking for alternative shipyards in China for its next round of expansion.
MB Shipbroking reports that Rongsheng Heavy Industries is also selling large tankers and bulk carriers, with deliveries expected in late 2026. The restart could lead to a 1 per cent increase in global shipbuilding capacity.
Meanwhile, MSC has also reportedly signed a contract with Jiangsu Hantong Group for 10 21,000 TEU LNG dual-fuel carriers to be delivered from its new drydock between the second half of 2027 and 2028. Known for building bulk carriers, this marks Han Tong's first foray into the container sector. MSC is also rumoured to be building a series of 11,000 TEU LNG dual-fuel vessels at Penglai Jinglu Shipbuilding.
With the expiry of its ship-sharing agreement with Maersk, MSC is poised to operate on its own in the main East-West trade from next year.
The history of Jiangsu Rongsheng Heavy Industry is roughly as follows:
In 2005, Jiangsu Rongsheng Heavy Industry was founded in Nantong, once China's largest private shipbuilder;
Between 2006 and 2011, the company's business grew from shipbuilding and offshore to power engineering, a period of rapid growth, and in 2010 it was listed on the main board of the Hong Kong Stock Exchange, becoming the mainland private enterprise with the highest market capitalisation in Hong Kong that year, and its founder, Zhang Zhirong, was awarded the title of ‘King of Ships’;
During the three years from 2010 to 2012, Rongsheng Heavy Industry ranked first in China in terms of the number of orders held;
In 2012, Rongsheng Heavy Industry reported its first annual loss of 573 million yuan after listing;
In 2013, Rongsheng Heavy Industry encountered a ‘money shortage’ and was trapped in a capital chain predicament;
In 2014, Rongsheng Heavy Industry acquired New Continental Oil &Gas Co. Ltd. and gained the co-operative rights and interests of 4 oil fields in Fergana Basin of Kyrgyzstan, a Central Asian country;
In 2015, Rongsheng Heavy Industries changed its name to China Huarong Energy Company Limited and changed its business direction to the oil and gas market;
In 2019, two 900T gantry cranes at the Rongsheng Heavy Industries site were dismantled and sold to other shipyards;
In 2020, the Rongsheng Heavy Industries site started to be leased out.
https://www.cnss.com.cn/html/shipbuilding/20240806/354263.html
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