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June 2006 39 start production of 50,000 mt per year in 2007, with plans to expand to 300,000 mt by 2016. STX also announced plans to invest $100 million in a 30,000 mt per year hull-block facility in the Shandong province.

Samsung said it has plans to invest in a second, 200,000 mt per year block factory in China as their first six year old facility in Ningbo is no longer able to meet their demand. Furthermore, two major Korean block builders, DongYang and SungDong H.I., are entering the newbuilding market. Other low cost countries have also become alternatives for outsourc- ing. Daewoo said they will develop a shipyard in the

Philippines. The initial plan is to start up by building vessels up to Panamax size and the first newbuildings will be delivered in 2008. Hanjin Heavy Industries was also planning to invest $1 bill. to set up a 1 mill. square metres large shipyard in the Philippines.

Initially, they plan to manufacture hatch and hull blocks from the middle of 2007. Once its workers have acquired shipbuilding experience, they will progress to constructing large ships up to VLCCs and post-Panamax container ships sizes.

China

Chinese yards increased their market share by three percentage points in 2005. The most significant change was recorded in the dry bulk segment where they doubled their share and took one-third of all orders. During the year they increased deliveries by 30 percent. A 3.8 million cgt increase was noted in their order book, which by the end of the year repre- sented 14 percent of the overall order book.

China's ambition to become a big shipbuilding nation is all well known. The country obviously has comparative advantages in terms of being a low cost area, but its ambitions in shipping also springs out of a huge need to import raw materials and export prod- ucts. Numerous new facilities have already been con- structed and more are set to follow. China

Shipbuilding Industry Corp (CSIC), the northern ship- building group, announced plans for new a yard in the province of Heibei, dubbed Shanhaiguan

Shipbuilding Heavy Industries. The CNY 2.6 billion, 700,000 sq. m. project will focus on containerships, bulk carriers, tankers and FPSOs and are set to start building its first vessel in 2008 with delivery 20 months later. Also, Dalian and Dalian New

Shipbuilding & Heavy Industries merged at the end of 2005 after a 15-year separation, and the owner is plan- ning to expand the facilities further by adding two more VLCC-size dry docks. Jiangsu Yangzijiang got approval from the central government to build a new 96 x 500 m drydock directly across the Yangtze River from where it is currently situated. The yard said it had ambitions to build container ships of more than 4,000 TEU and would be able to deliver the first ship at the end of 2008. Nacks, a joint venture between

Cosco and Kawasaki, got government approval to build a new 500-meter long CNY 2 billion drydock with first delivery in 2008. China also has plans to start building sophisticated tonnage, and the Shanghai based yard Hudong-Zhonghua Shipbuilding had at the end of 2005 received orders for a total of five LNG carriers. This year the yard launched its first LNG ves- sel.

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