COENS and the Offshore Fabrication Industry in China
Posted on November, 28, 2016
Larry Park, Manpower Manager of COENS China talks about COENS and the offshore fabrication industry in China.
Offshore Fabrication Industry in China
China is the world’s largest shipbuilding nation. Until recently, many small to medium sized Chinese shipyards have offered cheap alternatives to the superior quality of vessels built in South Korea.
But as the market reshapes itself, China has found the need to reposition its offering and go head-to-head with South Korea, which leads the value-added, high performance shipbuilding market.
Consequently, China has shifted focus to produce more high-end vessels, including exploration and research vessels and LNG carriers (LNGC), in line with the Chinese government’s “Made in China 2025” industrial plan.
The Ministry of Industry and Information Technology (MIIT) document, Issue 55, has set out government requirements for the modernization of the Chinese shipbuilding sector as part of that drive to modernize industry. “The nation encourages enterprises to expand, improve their technological standards; establish a modern shipbuilding model; raise the design and manufacturing standards of shipbuilding; raise production efficiency and product quality; improve environmental protection, production safety and health management of employees; reduce resources and energy consumption; and eliminate outdated capacity,” says the directive.
To put the issue into effect, the Ministry has announced the creation of the so-called ‘White List’, to support the goal of raising standards of shipbuilding and increasing offshore fabrication. The list includes select yards that comply and operate in accordance with Issue 55. Failure to comply with the new legislation will mean that licenses are refused, or if previously issued will be revoked. This will ensure that shipyards undertaking offshore fabrication work are fully capable to so and committed to technology investment.
Achieving the goals laid out by the new law will be challenging for the yards, but it is evident that China is determined to raise the standards of its offshore fabrication industry to match the world’s best.
COENS in China
COENS China team operates from its offices in Shanghai, Qingdao and Dalian, working closely with major shipyards that are currently performing offshore fabrication work. Currently, local and international Recruitment, Accounts Management and Global Mobility are COENS’ core business functions in China. A few of the projects that COENS is involved with include the Ichthys LNG project, Yamal project and fabrication of specialty rigs and vessels.