Hungry Chinese yards turn focus from bulkers to OSVs

OCTOBER 8, 2012 — With orders for large bulk carriers and the like few and far between, hungry Chinese shipyards are turning their attention to what once might have seemed safe niche markets for more specialized yards. Evidence of this: Singapore-listed Chinese shipbuilder JES International reports that it has entered into a shipbuilding contract with a new customer based in Norway for a UT 755 LN platform support vessel.

JES says that the contract is the first in its 30 year history for the construction of an offshore support vessel.

“As the shipping industry remains in the doldrums, it is part of the Group’s strategy to maximize, enhance, and leverage on our capabilities to explore growth opportunities beyond the commercial shipbuilding industry into the more robust offshore oil and gas sector to enhance shareholders’ value,” said Mr. Jin Xin, Chairman and Chief Executive Officer.

JES, whose shipyard at Shiwei Port, Jingjiang City, covers an area of 804,000 square meters and can handle ships in the 500,000 dwt capacity, has an estimated annual shipbuilding capacity of 2 million DWT.