Back to China! Samsung Heavy Industries and CIMC Raffles form strategic partnership

2023-04-03 09:00

Samsung Heavy Industries, which was accelerating its withdrawal from China, has been disrupted by a sudden surge in orders and has finally chosen to return to China to ensure timely delivery and secure more orders.

On the morning of March 30th, at the Jiangnan Mountain base of the Chang Hong International Daishan branch factory, a strategic cooperation seminar was held between Zhoushan Chieh Long International Shipbuilding Co., Ltd., Samsung Heavy Industries Co., Ltd. (Korea), and SEASPAN Corporation, resulting in a tripartite framework agreement. According to the agreement, Chieh Long International will receive three years' worth of section construction orders from Samsung Heavy Industries, with plans for subsequent whole-ship construction projects. This cooperation is of great significance to Chieh Long International.

In 2021, Chieh Long International moved into the Jiangnan Mountain base in Daishan Jinhai Zhizao, becoming the third base of Chang Hong International Industrial Park in Zhoushan. Chieh Long International has excellent hardware and software capabilities in shipbuilding, upgrading its shipbuilding workshops while expanding its business in conventional ship repair and marine engineering upgrades. In just one year, it became a new economic growth point for Chang Hong International Industrial Park.

In recent years, Samsung Heavy Industries and Chang Hong International have maintained good business relations, cooperating closely. They started a partial section construction cooperation project last year. Currently, Chieh Long International is busy with production, and the production volume of ship sections in the section workshop is saturated, and the ship repair dock period at the wharf is also close to full capacity. In 2023, taking advantage of the tripartite cooperation, Chieh Long International will introduce Samsung Heavy Industries' advanced shipbuilding concepts to improve Chang Hong's shipbuilding management level, laying a solid foundation for further building the Chang Hong shipbuilding brand.

Zhoushan Chieh Long International Shipbuilding Co., Ltd. is a wholly-owned subsidiary of Zhoushan Chang Hong International Shipbuilding Co., Ltd., located in Jiangnan Mountain, Daishan Island, in the central Zhoushan archipelago of Zhejiang Province; close to major cities such as Shanghai, Hangzhou, and Ningbo; the port area is adjacent to international shipping routes and the Yangshan Port area of the Shanghai International Shipping Center, controlling the key point of China's river-sea intermodal transport and the Yangtze River's "golden waterway"; with convenient island transportation, sufficient energy and materials, a wide port area, good windbreak conditions, and a deep shoreline, it is one of the most advantageous shipbuilding and repair bases in China.

According to International Ship Network, the Daishan branch of Chieh Long International occupies a 3870-meter shoreline with an average water depth of 15 meters; two 300,000-ton docks; one 3,000-ton material wharf; four under-construction outfitting wharves with a total of eight berths, including two 300,000-ton outfitting wharves with four berths, one 150,000-ton outfitting wharf with two berths, and one 70,000-ton outfitting wharf with two berths; two 450-ton gantry cranes; two steel plate pre-treatment production lines and multiple imported plasma flame cutting machines and other large-scale automated shipbuilding equipment; an annual steel plate processing capacity of over 200,000 tons, an annual shipbuilding capacity of over 1 million deadweight tons, and the ability to repair and build various large and medium-sized container ships, LNG ships, LPG ships, ro-ro ships, and other types of ships, both domestically and internationally.

It is understood that in the first quarter, the Daishan branch of Chieh Long International showed strong production momentum, accelerating the economic progress towards Chang Hong International Industrial Park's annual production goals. With the large-scale construction of Samsung sections and the batch repair of the SEASPAN third-party agreement's desulfurization tower modification project, Chang Hong's annual output value will see a greater leap.

Clarksons data shows that Samsung Heavy Industries currently has orders for a total of 143 vessels with 16.09 million deadweight tons, including 49 container ships, 80 LNG carriers, 5 tankers, 2 VLGCs, 2 shuttle tankers, 4 drilling rigs, and 1 LNG floating production, storage, and offloading unit (FPSO), with deliveries scheduled until 2027.

In addition, Samsung Heavy Industries received orders for a total of 10 LNG-powered 15,124 TEU ultra-large container ships from SEASPAN in 2021. The first ship was delivered in February this year, and the remaining 9 ships will be delivered successively in the next two years. These 10 new ships have already signed long-term charter contracts with Israel's ZIM Integrated Shipping Services.