GSI (Guangzhou Shipyard International) has signed an agreement with China Railway Shanhaiguan Bridge Group to increase the production capacity of ship hull blocks. This agreement is aimed at meeting the growing demand for new ships and the increasing complexities in GSI's shipbuilding fleet.
Details of the Agreement and Its Impact on Production Capacity
The China Railway Shanhaiguan Bridge Group, established in 1894 and specialized in the construction of steel bridge structures and rail equipment, has six production bases across China. Under this agreement, the group will allocate production resources to ship hull blocks and will also be responsible for production quality, safety, and delivery timelines. The contract value and workload have not yet been disclosed.
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This agreement comes as GSI's production schedule has increasingly been pushed towards the end of this decade. Earlier this year, the company announced that its contract volume had reached nearly 100 billion yuan (14 billion dollars), with over 95 percent related to foreign orders and manufacturing capacities extended to 2030.
Development of Production Capacity in China's Shipbuilding Industry
In its latest round of orders, GSI has ordered 10 MR tankers from the central group owned by Greek owner, Uranus Pistiolis. Additionally, four more MR tankers for Advantage Tankers and several dual-fuel LNG carriers for MSC have also been planned.
The contract with the China Railway Shanhaiguan Bridge Group is not an isolated action. Several other steel bridge structure manufacturers in China have also entered the shipbuilding industry this year, taking on production tasks previously handled by established workshops. For example, in June, a subsidiary of the China Railway Bridge Group in Yangzhou began producing hull sections for a 73,000-ton self-propelled deck carrier. This project includes 110 blocks in the ship's loading section, with the heaviest blocks weighing around 190 tons.
Jiangsu Nanyang Shipbuilding Company is also coordinating construction, with the China Classification Society overseeing technical and quality requirements. Additionally, another specialized bridge company, Jiangsu Heavy, began work in September on blocks for a 40,400-ton cargo ship. A subsidiary of the China Railway Construction Group is producing 10 lower cargo hold sections, each weighing up to 96 tons, which are set to be transported to Shanghai for final assembly.
These developments are part of a broader program to increase capacity across China. The BRS brokerage group has identified at least seven inactive shipyards that have been reactivated, and twelve existing shipyards are expanding their production capacities.
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