Cosco

COMPANY PROFILE

2015

COSCO Shipyard Group

www.cosco-shipyard.com | +86 (0) 411 3922 999

Building a world class shipbuilding enterprise Editorial: Elizabeth Hardy

COSCO Shipyard Group CO., Ltd has completed ten EPC projects this year alone – delivering its floating accommodation unit (FAU) to Logitel four months ahead of schedule, it is a world first featuring a unique Sevan cylindrical design. Speaking to Total World Energy, Mr. Liang Yanfeng, President of the COSCO Shipyard Group, explains the strategies for maintaining a healthy order book and why international companies continue to look to China for offshore services…

Founded in 2001, COSCO Shipyard Group CO., Ltd, a subsidiary of China Ocean Shipping Company (COSCO), is a large enterprise of groups specialising primarily in large vessel construction, ship repair and heavy steel structure services. W ith shipyards at Dalian, Nantong, Shanghai, Zhoushan, Qidong and Guangzhou, COSCO

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has a total dock capacity of 1.85 million tons with two capacities of 300,000 tons floating docks, four capacities of 150,000200,000 tons docks and six capacities of 40,00080,000 tons docks. Boasting a repairing and rebuilding capacity for more than 600 big ships every year, its total site area now covers an

estimated 4.25 million sq. meters.

Last featuring COSCO Shipbuilding Group in our October issue, this month Total World Energy speaks to Mr. Liang Yanfeng, President of COSCO Shipyard Group who explains what 2015 has held for the Group so far: “The year 2015 has begun positively for us in several

COSCO Shipyard Group aspects, among which, production management and guaranteed deliveries.

“Over just the first two months of the year, we have delivered ten EPC projects, including one GustoMSC Ocean500 floating accommodation unit (FAU) to Cotemar; one cylindrical FAU to Logitel Offshore; three platform supply vessels (PSVs), based on the Ulstein PX 121 and the Rolls Royce UT 771 CDL designs, to Vroon, T idewater and East Sunrise. Three panamax bulk carriers to Lomar and KC Maritime; one handy-size bulk carrier to Harbor Shipping and one handy-size product tanker to Coastal Refining Corp.”

It seems that 2015 is

off to a busy and exciting start as Nantong Shipyard delivered its FAU to Logitel Offshore four months ahead of schedule on 16th February - the Arendal Spirit is a world first floating accommodation unit with a unique Sevan cylindrical design. “ We a re h a p p y t o i n t ro d u c e our floating accommodation u n i t s ( FA U ) a n d l i v e s t o c k c a r r i e r s , ” e x p l a i n s M r.

Ya n f e n g . “ T h e s e p u t u s in the first league among domestic players, and the market demand for which is expected to rise in the coming years.”

Nantong has now undertaken to build a f u r t h e r t h re e FA U s , a b l e to accommodate up to 490 people, with this

cylindrical design, helping t o i m p ro v e c o m f o r t , s t a b i l i t y a n d re l i a b i l i t y. C a p a b l e o f working in water depths of up to 3,000 meters, the FA U s a re e q u i p p e d w i t h a DP3 dynamic positioning system which allow them to operate in particularly harsh conditions.

C u r re n t l y u n d e r c o n s t r u c t i o n a t C O S C O ’s Z h o u s h a n S h i p y a rd i s a s e c o n d o rd e r f ro m t h e N o r w e g i a n c o m p a n y, Knutsen, for a 152,000-dwt s h u t t l e t a n k e r, s c h e d u l e d for delivery early 2017. The s e c o n d v e s s e l w i l l m e a s u re 276 meters LOA, 46 meters i n b re a d t h a n d 2 4 . 3 m e t e r s in depth. It will be classed by DNV GL with a design draft of 16 meters and a scantling

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draft of 17.55 meters. “ C u r re n t l y, w e h a v e a n o t h e r seven units on hand, and our FA U o rd e r b o o k i s e x p e c t e d t o f u r t h e r e x p a n d . T h e o rd e r s c o m e f ro m l e a d i n g o ff s h o re c o n t r a c t o r s s u c h a s P ro s a f e , C o t e m a r, A x i s O ff s h o re a n d L o g i t e l O ff s h o re , ” e x p l a i n s M r. Ya n f e n g .

“In the special purpose vessel segment, we have d e l i v e re d f o u r l i v e s t o c k carriers to the Dutch owner Vro o n a n d h a v e a n o t h e r t h re e u n d e r c o n s t r u c t i o n i n o u r y a rd s . We h a v e a l s o undertaken to build a variety of other types of special purpose vessels, such as salvage lifting vessels, module carriers, and cargo and training ships.”

M r. Ya n f e n g e x p l a i n s t h a t w i t h i n t h e s h i p re p a i r and conversion division,

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“The year 2015 has begun positively for us in several aspects, among which, production management and guaranteed deliveries”

C O S C O S h i p y a rd G ro u p is devoting itself to the “development and marketing o f e n v i ro n m e n t - f r i e n d l y a n d energy-saving technologies.”

These include ballast water t re a t m e n t s y s t e m re t ro f i t , containership bulbous bow c o n v e r s i o n , p ro p e l l e r n o z z l e installation and photovoltaic power application. “ M e a n w h i l e , w e a re p r y i n g deeper into the high-end s h i p re p a i r a n d c o n v e r s i o n m a r k e t , t r y i n g t o w i n m o re L P G , L N G c a r r i e r re p a i r s a s w e l l a s o ff s h o re m a r i n e equipment maintenance and u p g r a d e , ” M r. Ya n f e n g a d d s .

STRATEGIC IMPORTANCE Although the drop in oil prices has led to a slight decline in new orders for COSCO Shipyard Group, its current order book remains

considerable with deliveries in place up until 2017 and to ensure repeat business, the company places great importance on safety, time efficiency and cost effectiveness with each project it undertakes.

“Our long-term goal is to strive for a sustainable growth,” explains Mr. Yanfeng.

“Our basic strategies are as follows: Firstly, we will continue to strengthen our presence in our three core business areas (ship repair/ conversion, shipbuilding, offshore building/conversion), and when one certain area is in the downturn, hopefully the other two will make up for it.

It’s easy to redistribute our resources among the three business areas at any time and reacquire the balance among them.

“Secondly, we have successfully developed several key competitive products and will continue to optimise our product structure. Our trademark products, such as livestock carriers, wind turbine installation vessels, FPSO conversions, cylindrical drilling rigs, and floating accommodation units, have been well received in both the domestic and global market.

T h i rd l y, w e e x p e c t f u r t h e r cooperation with global oil majors and top oil companies in China, which w i l l b r i n g a b o u t re m a r k a b l e i m p ro v e m e n t t o o u r c u s t o m e r b a s e . A n d f i n a l l y, w e a re exploring opportunities to tap o n b o t h t h e u p s t re a m a n d d o w n s t re a m m a r k e t . ” Positioned as one of the l a r g e s t s h i p re p a i r a n d m a r i n e e n g i n e e r i n g g ro u p s

i n C h i n a , C O S C O S h i p y a rd G ro u p c u r re n t l y o c c u p i e s m o re t h a n 2 0 % s h a re i n t h e d o m e s t i c s h i p re p a i r m a r k e t , with six integrated and fully e q u i p p e d s h i p y a rd s l o c a t e d along the east coast of China.

Also a leading player a m o n g C h i n e s e s h i p y a rd s , M r. Ya n f e n g e x p l a i n s : “ We a re w e l l - p o s i t i o n e d to understand and meet customers’ expectations.

O u r o ff s h o re m a r i n e p ro j e c t s i n o u r o rd e r b o o k c o v e r a w i d e p ro d u c t r a n g e t h a t includes FPSO, semisubmersible accommodation rig and vessel, Sevan 650 drilling unit, semi-sub tender assist drilling rig, jack-up rig, platform supply vessel, e m e r g e n c y re s p o n s e / re s c u e / field support vessel, DP3 accommodation barge,

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subsea supply vessels and others. “ A s o u r o ff e r i n g s c o n t i n u e to move further up the v a l u e c h a i n i n t h e o ff s h o re marine segment, we will face further technical challenges i n t h e p ro d u c t i o n o f h i g h e r v a l u e p ro d u c t s . We w i l l nevertheless continue to build on our expertise and c a p a b i l i t i e s t o re a c h o u t t o a b ro a d e r c u s t o m e r b a s e t o lay an even firmer foundation for long-term sustainable g ro w t h i n o ff s h o re a n d marine engineering operations.”

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FUELLING DEVELOPMENT AND INNOVATION Maintaining such a prominent position within the industry is not always such an easy task.

Development and innovation is essential, as is the team and their commitment to providing a safe, cost effective and time efficient service to each client.

“We have over 1,600 experienced local and oversea talents in our design teams, who are able to crystallise the ideas and requests of our clients into workable

production plans,” explains Mr. Yanfeng.

Using modern project management techniques, adapted from its Singaporean and South Korean counterparts, the project management teams at COSCO Shipyard Group are capable of managing complex high-end turnkey projects, including bulk carriers, oil/chemical tankers of various tonnages, multipurpose carriers, container ships, specialist vessels - livestock carriers, semi-submersible vessels, salvage lifting vessels and alternative energy related products - offshore wind

COSCO Shipyard Group turbine installation vessels, small and medium size LNG carriers, to name but a few.

The Technology Center, established in April 2002, ensures COSCO Shipyard Group is fully capable of developing detailed designs, product designs and production designs whilst providing technology advisory services. Its sub technology centers in both Nantong and Dalian were recognised as National Level Technology Centers in 2011 and 2013 respectively.

W ithin the domestic and international arena, COSCO Shipyard Group has seen many firsts – “Our products and technologies have been greeted with major honours and increasing popularity,” explains Mr. Yanfeng. And

there is certainly clear evidence for this - In 2014, its floating drilling and storage platform block launching and rotated shutting buttjoining techniques received the WIPO-SIPO award for Chinese Outstanding Patented Invention and in 2012, its cylindrical deepwater drilling rig design won the National Science and Technology Progress First award.

Also in 2012, COSCO’s DP-3 deepwater drillship and offshore wind turbine installation vessels were certified as National Level Key New Products.

With such a successful history to date, COSCO S h i p y a rd G ro u p i s w e l l o n its way to building a world class shipbuilding enterprise a n d b e c o m i n g t h e p re f e r re d

partner of choice for major shipping companies - so, w h a t d o e s t h e f u t u re h o l d ? “ We s e e k a s u s t a i n a b l e g ro w t h w i t h c o n s t a n t i n n o v a t i o n a n d a re l i a b l e t r a c k re c o rd , ” e x p l a i n s M r. Ya n f e n g . “ We w i l l n o t o n l y c o n t i n u e t o p ro v i d e satisfactory service to e v e r y c u s t o m e r, b u t a l s o do our best to develop new t e c h n o l o g i e s a n d p ro d u c t s a n d c re a t e n e w p o s s i b i l i t i e s and values for them. “ We f i r m l y b e l i e v e t h a t , w i t h o u r c o m b i n e d e ff o r t , t h e C O S C O S h i p y a rd G ro u p will continue to thrive and b e c o m e a p re f e r re d p a r t n e r of world majors in both the shipping and marine re s o u rc e s e x p l o i t a t i o n i n d u s t r i e s i n t h e f o re s e e a b l e f u t u re , ” h e c o n c l u d e s

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