Form November 12^{th to 16th of 2007, the president and general manager Mr. Li Zhi of Shanhaiguan Shipbuilding Industry Co., Ltd, vice president Mr. Huang Guiqi and other two people went to Korean for visiting the owners. During the period in Korean, president Li had called at HMM, CIDO, HAEYONG MARITIME SERVICE CO., LTD, STX.POS SHIP MANAGEMENT, KOREA MARINE LIMITED, HANJIN SM, KOREA LINE and SINOKOR MERCHANT MARINE CO., LTD.}

During the period in Korean, president Li introduced the delightful achievement and operation strategy about ship repair of our company by reform for about one year. He emphasized on:

 1. The planning of shipbuilding and ship repair has made big progress. Our company has invested 2.6 billions for ship repair, which includes No.1 dock rebuilding, the million-ton base construction and other relative facilities of west zone. The shipbuilding operation is divided into three lines: No.1 dock mainly contracts less than 30,000 tons big lake type bulk carrier’s building and the shipbuilding contracts have been signed till 2011 at present; No.7 wharf land mainly contracts 35,000 tons bulk carrier’s building and other parts of conversion ship’s building and now we have signed 4 vessels and we are contracting new contracts; the western area million tons shipbuilding dock (main dimensions: 98m x 430m) mainly contracts 930,000 tons and 115,000 tons ultra panama type bulk carrier and now the shipbuilding contracts have been signed till 2011. The million tons shipbuilding dock of Shipbuilding Company will put into use in June, 2009 and then our shipyard’s shipbuilding ability will attain 1.4 million tons per year.

About ship repair aspect, Shanhaiguan Shipbuilding Industry Co., Ltd treat ship repair as our own trademark and main business all the time. In order to provide the better service to owner in the future, Shanhaiguan Shipbuilding Industry Co., Ltd make stronger of ship repair while we make bigger and stronger of shipbuilding. The ship repair planning of our company gains the big support of head office and Hebei Province government and the general investment is about 2.4 billion, the dimension of sea filling is 1,100 units of area in the eastern zone and new build three ship repair docks: two about 150,000 tons and one about 400,000 tons for the repair of VLCC and other ultra TEU. The relative equipments include wharf, workshop and shore crane etc, which will put into use at the end of 2009 in advance. At the appointed time, our company will posses 5 docks for ship repair at one time and the amount of ship repair is about 350 vessels.

2. The reform and personnel adjustment achieve obvious effect. 2007 is the most pivotal year of our company reform to stock company. At the beginning of this year, we adjust and innovate the production management system, organization structure, personnel and allot system, so the management makes progress gradually, a lot of capable young men tend towards the leader post and the new allocation system of “more work more money, less work less money, no work no money” enhance employees’ positivity. Form January till now, Shanhaiguan Shipbuilding Industry Co., Ltd has never made any vessel postpone of ship repair or shipbuilding, especially the first VLCC conversion ship “ASTRO LYRA” (Greece, single-skin to double-skin) delivered ahead one month of contract time, which has never appeared in other shipyards.

3. Our company adjusts the market management strategy of ship repair. Due to the economic profit of shipbuilding and ship conversion is higher, most shipyards transfer to shipbuilding and big-size ship conversion and some shipyards do not do the ship repair business. But our shipyard is different from others, while we carry on the ship conversion project, we consider about our yard’s actual productive ability. On the one side, we need to make bigger and stronger of ship conversion; on the other side we leave the adequate time of general ship repair and insure the big amount ships’ normal repair. At present the management key point of us is not to exploit the new market, but the old clients who support all the time. Especially for the high level circulation of shipping market, the repair period is the benefit, so Shanhaiguan Shipbuilding Industry Co., Ltd will consider about the owners’ profit and make sure each vessel delivered on time with good quality, which can improve our credit standing in ship repair market and make a good foundation of ship repair in future.

The general managers of each big shipping company approve the achievement of our shipyard’s reform and development firstly; Second, they admire the long term strategy planning that we can develop shipbuilding and ship repair together when other shipyards transfer to shipbuilding and big-size ship conversion; third, they praise the satisfactory service of ship repair for the old clients when the big size ship conversion holds the leading position, our shipyard keeps the good faith and leave the sufficient source and space for ship repair. Each shipping company expresses that they would like to build long term cooperative relationship and they have a lot of confidence about our cooperation in future. 

    On the one hand, this inspection makes our friendship deeply; on the other hand, we take the constructive advice form the owners that are benefit to our shipyard persistent development. Meanwhile, we sign 22 vessels’ general ship repair and 1 VLCC conversion agreements.