Changxing Island to Become China's Largest Shipbuilding Base

Anchor: Chinagxing Island, in the Chinese coastal city of Dalian, is expected to become China's largest shipbuilding base as many of the world's big shipbuilders establish their projects on the island. Zheng Chenguang has the details.

Changxing Island is located in Dalian, a costal city of northeast China's Liaoning Province. On the island, workers' from South Korea's STX Shipbuilding Company, the world's fourth largest shipbuilder, are busy building vessels.

The STX Shipbuilding Company held a ground-breaking ceremony on the Changxing Island Harbor Industrial Zone in 2007, making it the first Korean company to build a shipyard in China.

Chung Jun-Pyo, the director of the STX strategic department, explains why the company invested more than 2 billion US dollars to establish a shipyard in Changxing Island.

"Dalian has an abundant labor force for shipbuilding. The government of Changxing Island has given us great support. Several years ago, there was a sea here. For shipbuilding, we need reclamation.

Usually it takes several years, but Changxing Island finished that reclamation within four months."
He also added that Changxing Island has a mild climate and deep water, which is good for shipbuilding.

The island has set its goal to become the country's largest shipbuilding base in the near future.

Xu Changyuan, a director from the Changxing Island Harbor Industrial Zone committee, is confident about reaching this goal.

"Changxing Island has a deep-water coastline. It is adjacent to international shipping routes, so port-related industries have been developing fast here, especially the shipbuilding industry."

Xu says more than 40 kilometres of the nearly 90 km-long coastline can be used in developing port-related industries and are suitable for the construction of port berths with capacities ranging from 50,000 to 300,000 tons.

He says so far Changxing Island plays host to four major shipbuilding companies, including the STX Dalian Shipbuilding complex and the Singapore-based International Metal Cutting Company's Dalian shipbuilding plant.

"If the four plants operate to their full designed capacity, their total shipbuilding capacity will reach 15.6 million tons per year. Moreover, about 40 enterprises which produce auxiliary ship products are expected to invest in Changxing Island. I think it will take about three years for the island to become China's biggest shipbuilding yard."

Changxing Island is China's 5th largest island, covering an area of more than 250 square kilometres, and the largest island north of the Yangtze River. Its five core industries are shipbuilding, petrochemicals, metallurgical, equipment manufacturing and port logistics.

Zheng Chenguang, CRI News