China Rongsheng Heavy Industries in Pioneering Innovation to Expand into Offshore Engineering Sector

Christens the world's first 3,000-meter dpv "ocean pec 201"

HONG KONG, May 24, 2011 /PRNewswire-Asia/ -- 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, has collaborated with China National Offshore Oil Corporation ("CNOOC") to construct the world's first-ever 3,000-meter deepwater pipe laying crane vessel ("DPV") "Ocean Pec 201". A national major science and technology project conference and a christening ceremony to celebrate the completion of the vessel were held in Rugao City, Jiangsu today.

The DPV "Ocean Pec 201" was the culmination of the first joint offshore engineering project of CNOOC and China Rongsheng Heavy Industries. The project started in May 2005 and construction of the vessel commenced in September 2008. Offshore Oil Engineering Co., Ltd. ("COOEC"), a listed company held by CNOOC, was responsible for all construction cost as well as the operation upon completion. The christening ceremony today symbolised that the construction of the DPV has completed the outfitting and testing stages and is at the final stage of trial voyage and delivery.

Guests including top management of China Rongsheng Heavy Industries and its partners together with leading officials of the local Government presided over the occasion and officiated at the ribbon-cutting ceremony. Business executives included Mr. Zhou Shouwei, Vice President of CNOOC and academician at the Chinese Academy of Engineering; Mr. Zhou Xuezhong, President of COOEC; Mr. Zhang Dehuang, Chairman of Jiangsu Rongsheng Investment Group Co. Ltd; Mr. Chen Qiang, Chief Executive Officer of China Rongsheng Heavy Industries and Mr. Chen Guorong, President of Jiangsu Rongsheng Heavy Industries Co., Ltd. Local officials included Mr. Qinyan from the Jiangsu Economic and Information Technology Commission and Ms. Chen Huijuan, Deputy Mayor of Nantong & Secretary of Rugao Municipal Committee of the Communist Party of China.

Mr. Chen Qiang, Chief Executive Officer and Executive Director of China Rongsheng Heavy Industries, said, "'Ocean Pec 201' is an important part of the demonstration engineering projects. It includes major equipment and ancillary engineering technology for offshore deepwater engineering projects among the major national science and technology programmes under China's Eleventh Five-Year Plan. The entry of CNOOC in deep water exploitation creates opportunities for the offshore engineering sector in China and enhances the overall capability of the related manufacturing and metallurgy industries in China. The christening and impending trial voyage of the semi-submersible drilling rig 'Ocean Pec 981' and DVP 'Ocean Pec 201' highlights China's ability to develop sophisticated equipment in the offshore engineering sector and its competitiveness in the international market."

"Ocean Pec 201" is the world's first deepwater pipe laying crane vessel featuring 3,000-meter deepwater pipe-laying, 4,000 tonnes of lifting capacity and DP-3(1) dynamic positioning capability(2). The vessel is able to operate in any navigable area globally except for the Arctic regions. It is equipped with a series of advanced equipment including electric propulsion, VF electric drive, DP-3 dynamic positioning, "S" type deepwater dual node pipe-laying system as well as a 4,000-tonne heavy offshore crane. The vessel was designed and built in China. With a crew of 380, it is the first offshore engineering vessel in Asia and China capable of laying pipes at a water depth of 3,000 meters. The overall technology and capacity are also superior to similar vessels overseas.

The offshore oil development in China has long been hindered by its backward offshore oil technology and equipment, with operations confined to within 500 meters from the shore. However, CNOOC initiated its offshore development after the launch of the Eleventh Five-Year Plan through a significant investment in large deepwater development equipment including DPV and semi-submersible drilling rig. The completion of "Ocean Pec 201" fills a shortcoming in deepwater development of China. Together with other deepwater apparatus built by CNOOC, the DPV extends China's development capability to a water depth of 3,000 meters.

Mr. Chen added, "Offshore engineering has been the major focus of the Group. We now own China's largest offshore engineering dock equipped with China's largest gantry crane with a lifting capacity of 1,600 tonnes. The DPV is the first collaborative project between CNOOC and China Rongsheng Heavy Industries. In the future, we expect to further strategically cooperate with CNOOC in the offshore engineering field. Upon completion of the 'Ocean Pec 201', China Rongsheng Heavy Industries intends to further strengthen its design and construction capabilities, and lay a solid foundation to expand its offshore engineering business."

Mr. Chen concluded, "Looking ahead, the Group will continue to gradually expand our operating scale as stated in the prospectus and focus on high-end manufacturing and the development of large containerships to maintain our leadership in the shipbuilding engineering sector. We will also make marine engine building and offshore engineering our new growth drivers. Our aim is to develop the Group into a leading global heavy industries group and take the heavy industries in China onto the international stage."

Notes

About China Rongsheng Heavy Industries Group Holdings Limited

Established in 2005, China Rongsheng Heavy Industries advanced to become a market leader in the Chinese shipbuilding industry within five years. According to Clarkson Research, China Rongsheng Heavy Industries was the second largest shipbuilder and the largest privately-owned shipbuilder in the PRC in terms of total order book measured by DWT as of end of 2010, and had the largest shipyard in the PRC. China Rongsheng Heavy Industries was also a global leader in manufacture of VLOCs of over 400,000 DWT. Headquartered in Hong Kong and Shanghai, China Rongsheng Heavy Industries has production facilities in Nantong of Jiangsu Province and Hefei of Anhui Province. Currently, China Rongsheng Heavy Industries' business spans four segments: shipbuilding, offshore engineering, marine engine building and engineering machinery. China Rongsheng Heavy Industries' products include bulk carriers, crude oil tankers, containerships, offshore engineering products, low-speed marine diesel engines and small to mid-size excavators for construction and mining uses. It has established strategic cooperations with renowned international classification societies including DNV, ABS, LR, GL and CCS, and has built a customer base including enterprises such as CNOOC, Vale, Geden Line, Cardiff Marine Inc., MSFL and Frontline Ltd. The Group's products have been sold to 11 countries and regions including Turkey, Norway, Germany, Brazil, Singapore and China.

For press enquiries:

Strategic Financial Relations (China) Limited