VOLUME

25 September 2012 Monthly

81

COSCO SHIPYARD GROUP CO.,LTD.

Website: http://www.cosco-shipyard.com/englishNew/

Marketing: (86-21)58600111

Subscriptions: panda_news@cosco-shipyard.com

Mission Statement To be a world leader in ship repair, conversion, new building and offshore marine engineering, we maintain trusting relationships with our customers, employers, and partners, yielding best returns for shareholders, society and environment. Depending on our talented engineers working alongside with an efficient project management team and a highly skilled workforce, we could guarantee to deliver the projects we undertake timely and professionally.

COSCO Shipyard delivered deepwater semi-submersible drilling platform

On September 26, 2012, the sixthgeneration semi-submersible drilling platform ISLAND INNOVATOR was successfully delivered by COSCO Shipyard Group. Built for Norwegian shipowners, the multifunctional platform, detailed design, production design, procurement of equipment, system installation and commissioning of which are completed by COSCO Shipyard, represents the highest level of technology among products of the same type in the world. ISLAND INNOVATOR is another major breakthrough for COSCO Shipyard following the delivery of the world's first ultra-deep water cylinder drilling and storage platform. As the first platform in China to realize the onestop solution (design, construction, commissioning and completion) in the field of ultra-deepwater semi-submersible drilling platforms, ISLAND INNOVATOR contributes significantly to the marine equipment manufacturing industry in China. Designed and constructed in strict accordance with the relevant regulations of the North Sea Area in Norway, ISLAND INNOVATOR meets the relevant standards of Norsok, DNV, NMA, IMO, PSA, DSB, NCS and UKCS (N-Notation) as well as the NIPH standards regarding drinking water. ISLAND INNOVATOR has a total length of 104.5 meters, a molded width of 65 meters and a molded depth of 36.86 meters. The total height of the platform reaches 103.8 meters. The design draft of the platform is 9.5 - 17.75 meters with a maximum displacement of up to 38,000 tons, a maximum operating water depth of 1500 meters, a maximum vertical drilling depth of 8000 meters

World's most advanced semisubmersible accommodation and service platform steeling cutting
O n S e p t e mb e r 6 , the construction of the worlds most advanced semi-submersible accommodation and service platform N511, designed and built by COSCO (Nantong) Shipyard for COTEMAR, started in COSCO Nantong Shipyard. N511 adopts the OCEAN 500 model provided by GUSTO MSC. The de t ailed design, production design, equipment procurement, construction, installation and commissioning of the platform will be completed by COSCO Shipyard. The platform is 95 metres in length and 67 metres in width. The total height of the platform approaches 60 metres.. The platform has a design draft of 8.6 to 20 metres with a maximum displacement of up to 33,300 tonnes. The platform is equipped with the world's most advanced DP3 dynamic positioning system and 8-point anchor mooring positioning system. The platform can accommodate a maximum of 990 people; the dining hall can hold up to 300 people and c an al s o b e u s e d a s an emergency shelter. On the platform there are a total of 230 living spaces with windows. The platform meets the relevant standards and requirements of IMO, Resolution A468 (XII), D N V, I L O a n d U K C S as well as ABS and the U.S. Coast Guard requirements. At the steel cutting ceremony, the senior leadership of COTEMAR and the general manager of COSCO Nantong Shipyard Mr. Ni Tao jointly launched the project. The steel cutting ceremony s aw the pres enc e o f representatives from C OT E M A R , D N V, t h e Commercial Headquarters of COSCO Shipyard Group and the construction team.

and a maximum variable deck load of 4500 tons. The self-propelled speed is 10 knots. Equipped with advanced DP3 dynamic positioning and mooring positioning systems, with unmanned cabin design and centralized control of the operating room, the platform can hold 120 living units and is capable of working under adverse sea conditions (at a maximum wave height of 17.3 meters and a maximum wind speed of 51.5m/s). COSCO Shipyard has always been committed to the marine engineering equipment industry. By now it has already designed, built and delivered a number of high-end marine products, including the world's most advanced cylindrical ultra-deepwater drilling and storage platform "Hope" series, the world's first

self-propelled multifunctional offshore jack-up platform "SUPER M2", the world's second-generation offshore wind power installation vessel "Adventure" series, the world's most advanced 105000DWT and 59000DWT shuttle tanker series with independent intellectual property rights. Moreover, the design and construction of the world's first conceptional octagonal drilling platform, the world's thirdgeneration offshore wind installation vessel and jack-up drilling platform, the world's most advanced semi-submersible offshore service platform and offshore platform auxiliary vessels and other marine products are now in progress. COSCO Shipyard Group appears to be the marine engineering enterprise with the widest range of products in China.

COSCO Shipyard participates in 2012 China International Patent & Products Fair
From September 15 to 17, the 2012 China International Patent & Products Fair was held successfully at the Dalian World Expo Center. COSCO Shipyard Group participated in the Fair as a key enterprise in the field of ship and marine engineering. At the exhibition, COSCO Shipyard demonstrated typical products, scientific and technological innovation projects and 114 patentprotected research findings from recent years. During the exhibition, State Intellectual Property Office (SIPO) Commissioner Tian Lipu, vice governor of Liaoning Province, Teng Weiping, and local authorities of the province of Dalian visited the COSCO Shipyard booth and received a report on the status of development in the field of ship and marine engineering, scientific and technological innovations and patent declaration. Mr. Tian Lipu spoke highly of the rapid development of COSCO Shipyards achievements in marine engineering, scientific and technological innovations and patent declaration and wished COSCO Shipyard further success in obtaining more scientific and technological innovations and patents in the future. The exhibition, jointly hosted by the State Intellectual Property Office (SIPO), the China Trade Promotion Committee and the Government of Liaoning Province, aims at furthering the implementation of intellectual property strategy, promoting the commercialization and industrialization of patented technology and supporting the development of high-tech products with intellectual property r i g h t s , w h i c h c a n a c c e l e ra t e the transformation of economic development and ultimately realize the goal of building an innovative country.

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57,000DWT BULK CARRIER

Newbuilding

Three days five ships delivery

On September 14, COSCO Zhoushan Shipyard held a delivery signing ceremony for N202, the 57,000DWT bulk carriers being built for the Far Eastern Group following the delivery of N196, built for Greece company Leros on Sep. 10, and N195 on Sep. 11. Thus the yard realized delivery of 3 ships within 5 days.

ER Company N341 Sea trials

On August 30, the 57,000DWT bulk carriers being built for ER Company at COSCO Guangdong Shipyard successfully finished four-day sea trails and returned to the yard.

COSCO (HK) Industry & Trade Holdings G.M. visits COSCO Shipyard Group
On September 18, the general manager of COSCO ( H K ) I n d u s t r y & Tr a d e Holdings Limited, Leng Ping, accompanied by the general manager of COSCO Network (Beijing), Yu Chunlai, deputy general manager of COSCO Network (Beijing), Qian Wei, and four other staff members, paid a visit to COSCO Shipyard Group. The Party Secretary of COSCO Shipyard Group, Ma Zhihong, warmly received Mr. Leng Ping and his party. At the meeting, Mr. Ma Z h i h o n g g ave a d e t a i l e d introduction to Mr. Leng Ping regarding COSCO Shipyards development in recent years: the Group insists on scientific development, keeps deepening the transition of products and has gradually formed a diversified industrial pattern consisting of ship repair, ship building and marine enginee r i n g . Representatives from COSCO Shipyard Groups Planning Department and Information Centre emphasized the optimistic development trend of marine engineering and the application of information technology in the Group. Mr. Leng Ping said that the diversified industrial structural development of COSCO Shipyard can be witnessed by all. Especially in recent years, the construction and delivery of a series of highend marine engineering products reflected the advanced technology and R&D capabilities of COSCO Shipyard and have greatly enhanced the worldwide brand awareness of the Group. Additionally, both sides also discussed how to make good use of their market resources to seek further bilateral cooperation in ship repair, ship new building, information technology and other aspects, hoping to maximize mutual support and development.

Zhongxing Sea-Land Engineering receives NDT certification for marine engineering (DNV)
Recently, Zhongxing Sea-Lands t es ting depar tment in Nant ong received DNV certification for nondestructive testing (NDT) for marine engineering, which became another major enhancement in its qualification following the National Laboratory Accreditation Certificate received earlier this year. Aiming at creating a worldclass detection brand and seizing the high-end marine nondestructive testing market, relying on the rapidly developing marine equipment manufacturing business of COSCO Shipyard, in recent years Zhongxing Sea-Land is vigorously strengthening its construction of marine non-de s truc tive t es ting personnel and actively seeking thirdparty certification. Today Zhongxing Sea-Land has already become a specialized testing organization with the largest number of NDT personnel in China, leading in technology, services and professional qualifications. DNV is a world-renowned Classification Society and certification body. The achievement of DNV approval implies that Zhongxing SeaLand is capable of participation in international competition.

Recently, COSCO Guangdong Shipyard repaired a ship named JIAHE, owned by Ta-Ho Maritime Corporation. This is the first time that Ta-Ho Maritime Corporation and COSCO shipyard Corporation have co-operated on a project. At the time the repair work on JIAHE was completed, and the owner s representative, Mr. Ma JianXun, was interviewed. Mr. Ma was deeply impressed by the security and management of

the yard as well as the responsibility and professionalism of the yards management team. He said, The 20 days of working here, your shipyards living arrangements are very careful, especially on transport. He thought highly of our business service, and summed his impressions up in one phrase; Take good care of . When talking about any advice he could give on our shipyards management, Mr. Ma honestly said,

COSCO Guangdong Shipyard pay close attention to security and management, various aspects were done very well. At the end of the interview, Mr. Ma emphasized his wish for further cooperation with the yard.

Matson executives visit COSCO Nantong

On September 12, the Chairman of the Board of Directors of U.S. company Matson, Mr. Walter Dods, president and CEO of said company, Mr. Matt Cox, accompanied by the deputy general manager of the Commercial Headquarters of COSCO Shipyard Group, Xing Chendong, paid a visit to COSCO Nantong Shipyard. Matsons vessel Mahimahi is currently under repair in COSCO Nantong Shipyard. It is the fifth time the vessel has visited COSCO (Nantong) Shipyard for repair and maintenance. Mahimahi is also the 30th ship Matson has repaired or converted in COSCO Shipyard Group. At the welcoming ceremony, the general manager of COSCO (Nantong) Shipyard, Ni Tao, expressed his sincere thanks to Matson for providing many opportunities for cooperation in the past 11 years. Mr. Matt Cox also expressed his gratitude and appreciation for the high-quality repair and conversion services provided by COSCO (Nantong) Shipyard over the years.

Offshore

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COSCO Guangdong First Tender Barge steel cut
On September 20, a steel cutting ceremony was held for the first drilling tender ship Edrill-1(N490), to be built by COSCO Guangdong Shipyard for Energy Drilling. For this project, the first tender barge built for Energy Drilling, COSCO Guangdong is responsible for detail design, production design and all the equipment procurement as well as equipment system installation and commission. The ship is 100M in length, 30M in width, has accommodation for 170 staff and can operate at a depth of 20-200M . The project is required to meet the IMO Noise Levels on Board Ships and MODU Codes, as well as ABS class requirements. A total of 200 people, including representatives development and promotion of offshore management systems; d) the introduction and cultivation of offshore technology professionals. Mr. Wang Yuhang pointed out that, as the financial crisis deepens its impact on the world economy, the ship repair & building market continues to slump; whether COSCO Shipyard Group can survive the severe situation and prosper is likely to be prominently determined by the development of the Offshore Division. The establishment of the Offshore Division is a milestone for the company and is entrusted with the important mission of making COSCO Shipyard Group one of the key enterprises in the field of offshore manufacturing in China by 2015.

COSCO Shipyard establishes Offshore Division

On September 3, 2012, the Offshore Division of COSCO Shipyard Group was officially established after extensive a n d i n - d e p t h re s e a rc h a n d preparation. At the founding meeting, the party secretary of COSCO Shipyard Group, Ma Zhihong, announced the establishment of the Offshore Division and appointed the leadership team. General Manager of COSCO Shipyard Group Wang Yuhang made an important speech, fur t he r c lar i fying t h e m a i n functions of the Offshore Division: a) the planning and deve loping of t he o ffs h o re business; b) technological i n n ova t i o n a s s o c i a t e d w i t h offshore construction; c) the

from Energy Drilling and ABS, leaders from COSCO Shipyard Commercial Headquarters and members of the construction team, co-witnessed the moment.

COSCO Qidong Marine and the East China Sea Rescue Bureau signing ceremony
On September 7, COSCO (Qidong) Marine and the East China Sea Rescue Bureau signed a strategic cooperation memorandum for maritime emergency support services in Shanghai. The president of COSCO Shipyard Group, Wang Yuhang, and the commissioner of the East China Sea Rescue Bureau of the Ministry of Transportation and Communications, Lu Dingliang, attended the signing ceremony. In recent years, a number of large-scale marine projects constructed by COSCO Qidong Marine, such as Hope-1, Hope-2 and GM4000, have seen strong support from the East China Sea Rescue Bureau of the Ministry of Transportation and Communications during the sea trials. The two sides have established a good cooperative relationship. Based on the signed Memorandum, the two sides will carry out more extensive cooperation in ensuring safety in the process of towing and sea trials of marine equipment, as well as in other related research areas. At the signing ceremony, the president of COSCO Shipyard Group, Wang Yuhang, expressed sincere gratitude for the East China Sea Rescue Bureaus

COSCO Dalian Shipyard establishes a new model of FPSO design modifications

In the process of converting the 6th FPSO for MODEC, COSCO (Dalian) Shipyard, also building upon its experience, has taken a bold step to integrate advanced concepts of shipbuilding design into its conversion service model, thus forming a new model for FPSO conversion services. The new model utilizes three-dimensional modeling and unitization design at its core to further enhance the technical strength of the yards FPSO conversion ability. The Technology Centre of COSCO (Dalian) Shipyard is now able to apply 3D modeling software to its marine conversion projects. The modeling of the modified structure of the hull was realized with the help of the software which serves as an integrated design platform to promote inter-professional communication, interference checking and optimizing the integration of block fabrication. T h e fu l l a p p l i c a t i o n o f t h e software significantly improves design quality and order accuracy, while also making piping and accessories margins much more controllable.

strong support in the development of COSCO Shipyards offshore business. He pointed out that the East China Sea Rescue Bureau is not only a witness and participant in the development of COSCO Shipyards offshore business, but also a supporter. Mr. Wang Yuhang hoped that the two sides further expand their field of cooperation, enhance the depth and breadth of cooperation and succeed in making great contribution to mutual development.

N418 & N419 moves smoothly

On September 1, the offshore platform N418 successfully undocked at the COSCO Qidong Base after completion of the EL 0-24.5M main hull. Following that, the EL 24.5-36.5M large block erection will be carried out as planned. On September 3, N419 successfully completed erection, towing and docking as planned. This towing and docking made a new launching record by semisubmersible barge as its weight reached more than 12000 tonnes. After docking, EL 13.4-24.5M main hull and 6 main block lifting will be the next step.

Another marine project included in the 2012 National Key New Product Plan
On August 17, the ultra-large offshore wind turbine installation platform project, developed by COSCO (Nantong) Shipyard, was included in the 2012 National Key New Project Plan. This is the second COSCO Shipyard project to enter the National Key New Project Plan following the D-P3 deepwater drillship with dynamic positioning system, Initiated by the Ministry of Science and Technology of China, the National Key New Product Plan is designed to encourage independent innovation, promote the development of new products and the transformation and industrialization of technological achievements through policy guidance and financial support. The ultra-large offshore wind turbine installation platform is a synthesis of ship and offshore platform, carrying out multiple functions such as offshore wind turbine transport, heavy lifting and dynamic positioning. To d a y C O S C O ( N a n t o n g ) Shipyard has acquired the capability to undertake the engineering, procurement and construction (EPC) of such specialized marine vessels and has already entered into the implementation phase. The previous 2 second-generation ultra-large offshore wind turbine installation vessels, designed, built and delivered by COSCO (Nantong) Shipyard, have achieved the full satisfaction of their owners, while two others are under construction and will be delivered soon.

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Recently, COSCO Zhoushan simultaneously received three letters of appreciation from COSCO Container Lines, COSCO Bulk Carrier and GENERAL MARITIME MANAGEMENT (PORTUGAL) in which they all expressed their appreciation for the shipyards consideration for customers. In their letters, the customers said that they admired COSCO Zhoushan for its efficient performance in labour allocation, health and safety measures, sense of responsibility and overall high standards. Customers also pointed out that COSCO Zhoushan not only completed the work before the planned departure date, but also completed the repair work safely and efficiently and with high quality. COSCO Zhoushan once again showed their spirit. Since August, COSCO (Zhoushan shipyard) experienced typhoon conditions four times. Facing such harsh weather conditions including typhoon and continuous high temperatures, repair staff actively contacted shipowners to optimize their repair schemes. At the same time, they worked very hard against the clock during spells of good weather to ensure the vessels were able to sail on time. What they did won the owners trust and praise. In addition, Japan's NYK, Bangladesh Brave Royal Shipping and Jia Xin International Shipping also sent e-mails to express their appreciation for the work and effort on strict accident prevention and control before typhoon and rapid recovery of production after the typhoon: eventually completing the repair mission in the harsh conditions to a high standard. This year, COSCO Zhoushan has focused on core customers in actively improving

Ship Repair & Conversion

Overcome bad weather to ensure dock period schedules

COSCO Zhoushan prioritized the transfer of personnel working on other ships to the critical worksites to ensure deadlines were met and also successfully directed personnel to another ship which required important guarantee work to be completed. In order to better communicate with customers, all the staff of COSCO Zhoushan participated in focused customer maintenance activities. Firstly, the Project Manager and SRM actively do the daily work of communication and on-site maintenance with the clients. Secondly, for important projects and customers, COSCO Zhoushan now host weekly meetings for directors and repair managers in which customer feedback can be immediately collected and acted upon. Faced with extremely hot weather, COSCO Zhoushan arranged some flexibility into its operating hours. In one example, COSCO Zhoushan borrowed a construction team from another plant to boost productivity where needed. In another example, the yard improved the construction environment as much as possible by arranging shade nets above the main deck and using a technique of locating ice behind fans to improve staff working conditions. During the typhoon season, the team made full use of daytime working to maximize production prior to arrival of the typhoon, and supervisors and foremen in charge operated separately, but in a coordinated way, which provided the best possible guarantee of production continuity for our customers.

Bonus for safely rushing to completion

At the end of August the repair team of COSCO Shanghai efficiently and effectively accomplished repair works for the reefer ship Waves. Furthermore, the total repair period was shortened by 3 days compared to our original contracted repair period. The owner of MV Waves was very glad to keep their previous promise of "US$ 3000 per day for every single day in advance". Such a practice is a very rare phenomenon in the current bad market conditions. At the beginning of August the contract was signed with this reefer owner with a promise that we could finish their entire repair within a 21day working period. However, after the initial inspections, the owner found the scope of steel inserts and renewals had significantly increased by 30%.. More seriously all the newly identified work was located in water ballast tanks and oil tanks which are covered by a thick layer of insulation, plywood and gratings. The first step after completion of inspections, was to arrange to retain the 100 tonnes of fuel oil in each center oil tank that the owner wanted to keep during the repair .The owner has been a long-term cooperator with COSCO Shanghai, and they are very strict on repair period, quality and workmanship. They never negotiate with the shipyard about the working period: not even for this contract. Their attending superintendent even asserted his belief that this project is a mission impossible. To relieve the huge pressure on the shipyard, this owner even promised a bonus clause to yard which they have never done before. But the COSCO (Shanghai) Shipyard repair team has become famous for its ability to achieve impossible missions and it combined all the available resource in the yard to respond to the owner's impulse to support our motive. They made a devil of a repair plan: workers were divided into 3 shifts to work day and night, the QC stayed onboard to make sure the jobs were done correctly the first time, and the safety supervisors monitored the work on a 24 hour basis. Relying on our excellent cooperation we finally completed all the repairs 3 days in advance. This great achievement reflects our great courage and conviction.

their attention to detail; such as carrying out a series of work specifically to improve customer satisfaction. For the first half of the year, the commercial department and shiprepair department focused on customers care and satisfaction, following the philosophy of Group General Manager Wang Yuhangs "Four Combinations". In the process of production organization,

Our partner also is our friends

COSCO Lianyungang Shipyard has successfully completed the repairs for three consecutive v e s s e l s f r o m AT L A N T S K A PLOVIDBA D.D. Both sides have cooperated very closely and successfully from the moment of arrival of the first vessel to be repaired in our yard. The Imperial arrived in the yard for repair after deviating from Guangdong. ATLANTSKA PLOVIDBA D.D. is one of our loyal clients and so the yard also arranged a strong shiprepair team and more labor and facilities on board. The owners representative Mr. Pace was very satisfied with the yards ship repair team. The major repair work on the vessel included; normal minor hull repairs, sandblasting and painting of seven cargo holds, combination boiler repair, E/ R heater exchanger repair, oil tank clean and other routine mechanical and electrical maintenance jobs. On September 7th, 2012, the

captioned vessel sailed smoothly from COSCO Lianyungang Shipyard. COSCO Lianyungang shipyards repair quality and

service level is excellent. This time the work was also completed in accordance with the schedule, said Mr. Pace, with a smile.

Satisfactory repairs to GENMAR DEFIANCE in COSCO Zhoushan

On Sep.2nd 2012, M/T GENMAR DEFIANCE left the pier slowly. Its departure marked the successful completion of repairs to the subject vessel as well as the third vessel delivered to the owner successfully earlier this year. GENMAR DEFIANCE belongs to General Maritime Management (Portugal) Ltd, who operates 16 tankers all over the world. Since 2006, when the first vessel, M/ T Genmar Ajax, from General maritime entered our yard for routine inspection and repair, we began to establish a relationship with this client. In 2012, on the basis of mutual trust and understanding, our loyal clients awarded a series of vessel repairs to our yard. In return, we selected the best ship repair team for them. From the initial meeting after the superintendents arrival, we perused the repair specification and compiled a detailed repair plan. Every five days we reviewed the projects and adjusted the plan continually. Finally, we got upmost recognition from the owners side, specifically for the Electrical Department. The owner issued a warm appreciation letter for the excellent job done.