China State Shipbuilding Corporation, Baosteel and China Shipping Group, the three largest individual players in Chinese shipbuilding, steel producing and shipping, have recently signed an agreement on cooperating on the Long Xue Shipbuilding Base in Guangzhou.
The three companies aim to establish the biggest shipyard in southern China. The Long Xue Shipbuilding Base is one of the strategy shipbuilding areas approved by the Chinese central government. As the most important port city in Southern China, Guangzhou only has a shipbuilding capacity of less than one million DWT and the largest ship that can be built there is 60,000DWT. Long Xue will be able to reach 2.12 million DWT in production ability and will also be able to build 300,000DWT-sized ships.
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