China: RSHI Delivers Two VLCCs

China Rongsheng Heavy Industries Group Holdings Limited, a large heavy industries group in China, has delivered, today, one 380,000 DWT class Very Large Ore Carrier (“VLOC”) to each of Vale S.A. (“Vale”) and Oman Shipping Company S.A.O.C., with a combined tonnage of nearly 800,000 DWT, marking a new record high of the Group’s single-day deliveries.

With the ongoing advances in innovative technology and world-class shipbuilding experience, plus the improvement of scale and production efficiency, the building and delivery process of VLOCs is further enhanced. As of today, the Group has already delivered five VLOCs this year.

Christened as “VALE HEBEI” and “VALE SOHAR”, the two VLOCs have been well received by Vale and Oman Shipping respectively. In particular, “VALE SOHAR” passed all inspections and surveys after just one week of sea trial. The short trial period is the best testimony of our product quality which receives high degree of recognition from ship owners and classification societies.

Despite the ongoing challenges on the shipbuilding industry brought about by the global financial crisis and the European debt crisis, China Rongsheng Heavy Industries’ delivery plan has not been readily impacted. After delivering a single VLOC last year, the Group has smoothly delivered five VLOCs this year as of today. With another four VLOCs launched and being undergoing outfitting. As of today, the Group has delivered 15 vessels, represented a volume of approximately 3.14 million DWT, this year. It marks an over 90% growth comparing with the same period of last year and demonstrates a further improvement of the manufacturing efficiency and execution capability of the Group.

Both Vale and Oman Shipping are long-term customers and strategic partners of China Rongsheng Heavy Industries. The VLOC built for Vale and Oman Shipping adopts an environmentally friendly design to lower fuel consumption and reduce emission of SOx and NOx, while the operating efficiency is also better than most of the existing ore carriers. With its Energy Efficiency Design Index (EEDI) recorded at approximately 1.99 during sea trial, VLOC is in line with the low-carbon green product concept and meets the benchmark requirements on emission reduction set by International Maritime Organization (IMO) which will come into effect as of January 1 in 2013. With this high standard of quality and increasing maturity in design and technology, China Rongsheng Heavy Industries’ VLOC is expected to attract an even broader range of customers globally.