China Rongsheng Heavy Industries launches vessel for MSFL

The company inked a win-win business model with MSFL and Guohang Ocean Group.

China Rongsheng Heavy Industries Group Holdings Limited (“China Rongsheng Heavy Industries” or the “Group”; stock code: 01101.HK), a large heavy industries group in China, announced that the first Panamax bulk carrier ordered by Minsheng Financial Leasing Co., Ltd. (“MSFL”) was christened as “Guo Yuan 8” at the Group’s Nantong production base on 28 October. The leasing of the vessel to Fujian Guohang Ocean Shipping (Group) Co., Ltd. (“Guohang Ocean Group”) marks a win-win-win business model for all three parties.

MSFL is currently the largest business jet leasing and vessel leasing company in China. It is also the largest domestic shipowning customer of China Rongsheng Heavy Industries. MSFL holds an order of 28 76,000DWT Panamax bulk carriers built by the Group. Meanwhile, Guohang Ocean Group has entered into a financial leasing agreement of 18 Panamax bulk carriers with MSFL .

Mr. Chen Qiang, Chief Executive Officer and Executive Director of China Rongsheng Heavy Industries, said, “This strategic partnership forged by China Rongsheng Heavy Industries, MSFL and Guohang Ocean Group provides a win-win-win business model for the sustainable development of shipbuilders, financial institutions and shipowners. This business model not only facilitates the shipbuilding market to digest excess capacity, but also reduces the lagging effects of financial crisis sustained by shipbuilders. The new model helps to boost the development of the shipping industry in China by building vessels in China for local shipping companies, raising funds for local shipbuilders, and using locally built vessels for delivering locally made products.”

Ms. He Min, General Manager of Shipping Leasing Department of MSFL, said, “The penetration of financial leasing companies into the ship financing business has brought new financing opportunities and options to the shipbuilding and shipping industries. The financial leasing companies can optimise financial leverage and turn monetary capital into premium vessel assets. This not only can stimulate new shipbuilding orders for shipbuilders, but also creates a cost-effective opportunity for the shipping enterprises to develop and expand their fleets.”

Ms. He Min, General Manager of Shipping Leasing Department of MSFL; Mr. Wang Zuyan, Executive Vice President of Guohang Ocean Group; Mr. Zhang Yi, Vice President of Guohang Ocean Group; Mr. Xu Niwei, President Assistant of Guohang Ocean Group; Mr. Wu Zhenguo, Vice Chairman of China Rongsheng Heavy Industries, attended the christening ceremony, according to a China Rongsheng Heavy Industries report.

Mr. Chen Qiang concluded, “‘Guo Yuan 8’ is a vessel with intellectual property rights designed and manufactured by the Group for MSFL. The design meets the standardised requirements for bulk carriers of International Association of Classification Societies (“IACS”) and the future standardised requirements for bulk carriers. The vessel also reflects the Group’s leading standards in overall technology and operating capability among similar global shipbuilding enterprises. After the christening of this first Panamax, other vessels are to be built and delivered according to schedule. This will create wider scope for deeper cooperation among China Rongsheng Heavy Industries, MSFL and Guohang Ocean Group in the future.”