BEIJING – Seven Chinese shipbuilders whose portfolios include rig construction have formed a new alliance to realize cost savings through sharing resources.
The alliance, called China Offshore (Deepsea) Industry Alliance, was formally set up in Beijing on Dec. 28, 2016.
The alliance members comprise Yantai CIMC Raffles, Shanghai Zhenhua Heavy Industries Company (ZPMC), Cosco (Qidong) Shipyard, Shanghai Waigaoqiao Shipbuilding (SWS), China Merchants Heavy Industry (Shenzhen), Dalian Shipbuilding Industry Offshore, and Cosco Shipyard, which are all members of the ‘White List’ that was launched by the Chinese government in November 2015.
Shipbuilders on the list have proven their technological expertise and qualify for favorable financing terms.
In the case of the rig builders, it is a criterion for them to invest at least 2% of their annual revenue in developing design and technology to stay on the list.
The rig builders said in a joint statement: “With the development of the Chinese deepwater drilling equipment as our guiding principle, we will, through the combination of industry, academia, and research, promote the technological advancement and industrialization of deep-sea engineering equipment, and to build the image and branding of our industry in China.”
Supporting the newly minted alliance is an assortment of research institutions, universities, equipment suppliers, and banks.
During the launch of the alliance, Xin Guobin, vice-minister of industry and information technology, emphasized that the offshore and marine equipment sector is one of the 10 industries under the country’s ‘Made in China 2025’ strategy, and is a pillar of China’s ambition to become a shipbuilding nation.
Xin added that in order for the marine and offshore sector to grow, it must develop scale, innovation, and quality. He said that the alliance should focus on creating a platform for collaborative innovation, demonstration, revising standards and norms, and international co-operation and exchange.