As the global shipbuilding industry plunged into the great depression under the atmosphere of crisis, China shipbuilding was dealt a severe blow. But Rongsheng Heavy bore a brunt of great performance in 2009 to reach the sale proceeds of RMB 10.17 billion and the revenue of RMB 1.16 billinon.

The largely downturn shipbuilding price for order scrambling from Korean and Japanese yards is bringing Chinese shipyards some of pressure. Mr. Chen Qiang, Rongsheng CEO, assesses this that the incredible offering price influences the whole industry negatively since the higher shipbuilding cost of these countries.

Fontline CEO, Mr. Jens Martin Jensen, also believes that the cutting price would not be successive as the ship owners might claim the lower offerings. And the tendency would make the small yards disappear from the industry. He suggests the prices from Chinese, Korean and Japanese yards should be equivalent to benefit the market stability.

Also, Chen expresses the price reduction would make almost nothing to Rongsheng. The statistics shows that Rongsheng order book of Suezmax oil tankers reached 99 vessels of around 18 million dwt, 1/3 of the glabal volume and the first ranking across the world. In 2009, Rongsheng has sighned the contacts of 12 vessels, total 2.208 million dwt. Moreover, the capacity is fully arranged by 2012.

With regard to the future development, Chen said that the company is set to minimize the capital pressure of the ship owners by financing assistance thought the buyer’s export credit and early deliveries. Even if the current buildings are generated from orders of 2007 and 2008, some patrons have come to negotiate new orders already.