Rizhao City Shipbuilding Adjustment Revitalization Plan
I. Status Quo and Situation
(I) Status Quo.
Rizhao city is located in the middle of the Yellow Sea with coastline of nearly a hundred kilometers. It has a warm and semi-humid continental monsoon climate. Its winter is not very cold and summer is not very hot, and its natural condition is unique. There are two national first-class opening ports, Rizhao and Lanshan, and both of them are neither frozen nor clogged with silt but have broad land areas and good geological conditions. The shipbuilding industry is developed depending on the ports, and the regional advantage is obvious. In the entire city, there are 2 steel-ship building and repairing enterprises, which achieved the main business income of RMB130 million in 2008. The first-phase project of Shandong Huahai Shipbuilding Co., Ltd., which was invested by three Chinese parties and one Singapore party, has been completed and put into operation, realizing annual shipbuilding capacity of 150,000DWT. The second-phase project has been started. After it is put into operation, all kinds of 100,000t-grade ships can be built with total annual production of 500,000 ton, and 100 ships can be repaired. The ship repairing and building project of Rizhao Kingda Shipbuilding Heavy Industry Co., Ltd., a Sino-Japanese joint venture, will be completed soon. Then, 6 ships of 30,000t-grade can be built, and 20 ships can be repaired each year. In addition, Shandong Ruisheng Shipbuilding and Repairing Co., Ltd. is carrying on reclamation works to improve the infrastructure of the shipbuilding base and attract large investments for laying a good foundation for the shipbuilding.
(II) Situation.
To promote the healthy and rapid development of the shipbuilding industry, the State and the Province successively introduced policies such as the Medium and Long-term Development Planning of Shipbuilding Industry, the Eleventh Five-Year Development Plan of Shipbuilding Supporting [Equipment], the Comprehensive Compilation of Modern Shipbuilding Mode Action Outline, the Eleventh Five-Year Development Plan of Shipbuilding Industry in Shandong Province, and Opinions on Acceleration of Shandong Shipbuilding Supporting Development, etc., to make China become the leading shipbuilding country and powerful country in 2015. Our city has been listed as one of the three shipbuilding bases by the Province, and is also the sea-front industrial zone and super quality steel base in the south of Shandong Province, which is emphasized to develop in the Province. However, influenced by the financial crisis, the shipbuilding market fell sharply, demand for new ships decreased abruptly, the risk for fulfillment of ship delivery became larger and the shipbuilding industry is facing reshuffle. Therefore, make good use of the geographical advantages and natural conditions in our city, play the role of the predominant port, convenient transportation, steel base and other supporting conditions, seize opportunities, to realize the spanning development of the shipbuilding industry in our city.
II. Target Tasks
Accelerate the construction of the existing shipbuilding projects, and strive to make breakthroughs in the aspects of shipbuilding base, ship plate etc. Focus on development of the leading products including large bulk carriers, high-speed large container ships, chemical ships, and high-tech and high value-added marine engineering equipment and ship accessories. Attract and cultivate backbone enterprises which have advanced technology and conform to the modern ship building and repairing pattern, construct shipbuilding and accessory industry cluster areas with accumulative effect, and create an industry system with total shipment as the core, design as the guide and intermediate products as orientation. By 2011, the shipbuilding capacity reached 700,000 tons and there were 200 ships repaired. Strive to achieve a shipbuilding capacity of 1.7 million tons and repairing capability of 300 ships.
III. Development Focuses
Based on natural resources, infrastructure conditions and economic development, realize a high starting point planning, high level layout, high standard development, and make efforts to form a development pattern with effective gathering of the ship building and repairing, marine engineering equipment and supporting, and marine materials in the Development Zone and Lanshan District.
(I) “Two Large” Ship Repairing and Building Districts
——Lanshan District for Ship Repairing and Building. Mainly rely on Shandong Huahai Shipbuilding Industry Co., Ltd. to encourage the introduction, digestion and absorption of overseas advanced technology, optimize the shipbuilding process and further improve the level of final assembly according to the modern shipbuilding mode. Strengthen the basic management, promote informatization integration, and build up a complete, scientific and reasonable information system. Focus on repairing and building the 100,000t-grade small and medium-sized chemical ships, liquefied natural gas (LNG) and liquefied petroleum gas (LPG) ships which have high technology contents. Speed up the implementation schedule of second phase project, expand the scale of production, and develop and produce high-grade ships. Take advantage of investors’ technical advantages, establish the technical research and development center, improve the technical innovation ability, and enhance enterprise competitiveness in order to realize the annual shipbuilding capacity of 500,000 tons, ship repairing capacity of 100 ships, and the output value of 3 billion yuan.
——Development Zone for Ship Repairing and Building. The shipbuilding base in this Plan is located in the middle of Rizhao coast, 2 km from the city center and adjacent to the national first- class comprehensive Rizhao Port. It is located at the same latitude as the major shipyards of Japan and Korea, with good geological, hydro meteorology and other natural environment. The buried depth and direction of the bottom bedrock can meet the demands for the repair and building of 150,000t to 300,000t-grade ships and the wharf. The repaired and built ships can directly enter or exit from the 3km Rizhao main channel, which has superior geographical natural advantages. The Development Zone for Ship Repairing and Building shall closely seize the market pattern adjustment opportunity brought by the financial crisis, focus on attraction of “Chinese” large ship corporations and international well-known ship manufacturing enterprises, positively unite the steel large enterprise groups, merge the shipbuilding enterprises which meet business difficulty, circle the requirements of “high-end, large-scale, and internationalization”, to carry on high starting point and accurate positioning, in order to further perfect the planning of shoreline and supporting area, accelerate the construction of reclamation, and improve the infrastructure for ship building and repairing as soon as possible. On this basis, advocate the leading products of more than 100,000t- grade bulk carriers, high-speed large container ships, roro ships and marine engineering equipment to achieve new breakthroughs. At the same time, accelerate the ship building and repairing project at the ship heavy industry site nearby Rizhao Port, improve ship repairing and building ability, put them into production as soon as possible, try to achieve the shipbuilding capacity of 200,000t-grade and strive for making new breakthrough of the shipbuilding base to realize the planning target of annual shipbuilding ability of 1,000,000t-grade and repairing ability of 180 ships.
(II) “Two Large” Ship Supporting Industrial Areas
——Development Zone Shipbuilding Supporting and Marine Engineering Industrial Area. Closely circle the class-I and class-II supporting facilities in our city and Qingdao Haixiwan Shipbuilding Industry Site, set up the ship supporting industrial area in the Development Zone, construct the standard factory building, and attract powerful ship supporting enterprises at home and abroad to come for investment and construction of the marine generator sets, automatic control, diesel engine crankshaft and other large castings and forgings, as well as marine engineering deck machinery, oil sewage treatment, seawater desalination system, marine engineering equipment and high-tech products. Give full play to the equipment, technology and talent advantages of our city in the mechanical processing industry, depend on the existing casting, forging and piston machining enterprises, such as Golden Horse Group and Tongtai Group, to develop and produce the marine accessories, etc. Gather the processing enterprises in hull outfitting, hatch cover, ship launching, deck machinery, etc. to provide a powerful support to the development of the shipbuilding industry in the city.
——Lanshan Shipbuilding Materials Industrial Area. Establish and develop the production and distribution center for the shipbuilding raw materials such as marine steel plates, steels, pipes, etc. by depending on Rizhao Steel and Super Quality Steel Base. Develop and produce the marine paints, coatings and other chemical raw materials by relying on China University of Petroleum Science and Technology Park, Lanqiao Petrochemical Park and other chemical industrial parks, to make sure raw materials can enter the factories as prescribed and guarantee the supply to the local and surrounding shipbuilding industry.
IV. Policy Measures
(I) Set up Special Funds and Increase the Intensity of Support. Earnestly implement the preferential fiscal and taxation policy, further strengthen the financial support and guidance role to the shipbuilding industry, arrange certain funds to support the enterprise’s shipbuilding industry development under the existing support policy, [which is] mainly used for introduction of shipbuilding-related staff and support for the development of the shipbuilding industry enterprises. For enterprises conforming to the national industry policy and possessing high technology contents, big fiscal contribution and outstanding leading role, the system of “one-factory and one-reward policy” can be implemented.
(II) Support Enterprises to Develop and Produce Ship Supporting Products. Encourage existing mechanical processing enterprises to introduce talents and advanced technology and equipment for production of marine supporting products, establish a sound quality management system and global service system, and to promote enterprises’ standardized management and specialized and standardized production. For the shipbuilding enterprise obtaining the title of China Classification Society (CCS) or other domestic qualification certifications, every certification is rewarded 20,000 yuan. For the enterprises obtaining qualification certifications of the overseas well-known classification society, every certification is rewarded 50,000 yuan.
(III) Increase Attracting Investment and Capital Introduction, and Speed Up the Construction of the Shipbuilding Industrial Park. Being confident, seize opportunities, set up special groups for capital invitation to the shipbuilding industry, work out the investment-introduction plans and attract investments at home and abroad. Adhere to the principle of introducing both domestic and foreign funds at the same time. The main foreign funds come from the key shipbuilding and supporting enterprises in Japan and Korea, while the main domestic funds come from the large enterprises, steel enterprises and private enterprises, which shall be encouraged to enter the shipbuilding field. Actively promote the domestic and foreign shipbuilding enterprises and supporting enterprises to come to our city for investment and cooperation, further improve the general planning for shipbuilding and ship supporting industrial areas in the Development Zone and Lanshan District, increase the fund support, quicken the park construction, consummate the infrastructure as soon as possible and create a platform for introducing funds to lay a foundation for the fast development.
(IV) Improve the Financing Environment. Support the financial institutions to offer preferential interest rate to the loan applied by the shipbuilding enterprises, encourage banks to provide the shipbuilding industry development with seller’s credit and provide ship-owner with buyer’s credit according to the international practice and the corresponding conditions, execute the Trial Measures on Mortgage and Financing for Ships under Construction in Shandong Province, improve the mortgage and financing mechanism for ships under construction, ensure enterprises’ capital chain unceasingly; strengthen the construction of export credit insurance system and innovation of insurance business varieties, support large shipbuilding groups to raise funds through stock listings, oriented offering and issuance of enterprise bonds when conditions are ripe.
(V) Support Technological Upgrading and Indigenous Innovation. Support shipbuilding industry enterprises, rely on domestic key research and development institutes to jointly set up shipbuilding R&D agencies, encourage shipbuilding enterprises and research institutions to introduce advanced technology for digestion, absorption and re-innovation through joint cooperation and products development, improve the ability of indigenous innovation, speed up the technical renovation and upgrade of the existing shipbuilding enterprises, improve the quality of ships and accessories and enhance enterprises’ competitiveness.
(VI) Attach Great Importance to the Talent Team Construction. Actively build up a platform for talent introduction, formulate various preferential measures and policies to attract all kinds of talented persons and high-tech talents in shortage. Encourage the powerful institutions in our city to set up the specialty of Shipbuilding Design and Manufacture, increase support to the professional training institutions, establish the mechanism for united training by the enterprises and professional colleges and universities, and cultivate senior technicians in shipbuilding design.
(VII) Strengthen Coordination Services. Departments at all levels shall give full play to their own functions, actively implement the related policies, further improve the level of government services, enhance the cooperation ability of various functional departments, coordinate to solve difficulties and problems in the development of the shipbuilding industries in time, for improving the work efficiency, enhancing cohesion and promoting the sound and rapid development of the shipbuilding industry.