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ROK-invested shipbuilding project signed in Liaoning

By Bian Yi (China Daily)
Updated: 2007-06-08 09:11

STX Group, based in the Republic of Korea, recently signed a package of investment contracts worth US$410 million with Dalian municipal government.

The contract package includes a general investment agreement, an agreement on hull-block construction, and a shipbuilding agreement.

According to the contracts, STX Group will invest in building a ship industrial base in the Changxing Island Harbour Industry Zone in Dalian, one of five key investment destinations in Liaoning Province.

A number of high-rank officials from the provincial government and the Dalian municipal government attended the signing ceremony, which took place at the Liaoning Friendship Hotel in Shenyang, capital of Liaoning Province.

Covering 2.08 million square metres, the ship base will mainly be involved in shipbuilding and hull block construction and is expected to be operational by the second half of next year.

It is reported to be the first foreign-invested project with an investment value exceeding US$1 million in Dalian, since the central government began to carry out the strategy to revitalize traditional industrial bases in Northeast China in 2003.

The investment project is expected to help accelerate construction of the Changxing Island Harbour Industry Zone, driving development of the shipbuilding industry of Dalian and spurring growth of related sectors, such as steel, engines and ship components, said Xia Deren, mayor of Dalian.

Situated in Bohai Bay, Changxing Island has rich coastline resources, which provides huge potential for harbour industries.

Local authorities have attached importance to port construction. Infrastructure facilities, such as railway and roads, are being renovated and expanded.

Li Keqiang, secretary of the provincial committee of the Communist Party of China, said that port construction is closely related to the development of harbour industries.

"We will better our investment environment to make Changxing Island one of the pivotal points in developing the Bohai Bay-rim economic zone," Li said.

Due to its advantageous geological location and friendly investment climate, the Changxing Island Harbour Industry Zone has so far attracted a great number of investors from home and abroad.

Duk-Soo Kang, president of STX Group, said that his company has decided to shift its shipbuilding centre to China, where STX plans to expand its investment following the project.

As the world's sixth largest shipbuilder, STX Group is involved in the production of a wide range of ships. Its product line includes oil tankers, container ships, liquefied petroleum gas ships, ships for transporting vehicles and passenger liners.

In addition, the business scope of the group company also covers energy, engines and civil engineering.



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