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CHIA RONG : China Rongsheng Heavy Industries' 400,000 DWT Vloc Named and Launched - Lowers Cost for Vale and Forges Long-Term Cooperation, First Vlocs to be Delivered Soon

07/10/2011 | 05:15am US/Eastern
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[Press Release]CHINA RONGSHENG HEAVY INDUSTRIES’ 400,000 DWT VLOCNAMED AND LAUNCHED* * * *LOWERS COST FOR VALE AND FORGES LONG-TERM COOPERATIONFIRST VLOCS TO BE DELIVERED SOON

(10 July 2011, Hong Kong) – 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, and Vale S.A. (“Vale”), the largest global iron ore supplier from Brazil, held a naming and launching ceremony on 9 July for the first-ever 400,000 DWT Very Large Ore Carrier (VLOC) built in China. This new VLOC, named “VALE CHINA”, is the first VLOC of a few to be delivered in the coming two years. The new vessel can significantly lower overall delivery costs of iron ore for Vale. The attendance of Vale’s new Chief Executive Officer underscored the long-term cooperation between a major shipbuilder and ship owner.

Self-developed the world's most advanced VLOC

Mr. Chen Qiang, Chief Executive Officer of China Rongsheng Heavy Industries, and Mr. Murilo Ferreira, the new Chief Executive Officer of Vale, attended the ceremony. The Brazilian ambassadress was the godmother in the naming ceremony. Mr. Chen Qiang said, “The early christening of VLOC as “VALE CHINA” reflected the dedication and importance of the cooperation of both parties, as well as Vale’s strong interest in collaborating with Chinese companies.”

As the largest private shipbuilder in China, China Rongsheng Heavy Industries is one of the few shipbuilders in the world with the ability to build VLOCs of 400,000 DWT or larger. Within its shipbuilding segment, VLOCs account for the highest proportion of the contracts on hand in terms of contract value, thus the naming and launching of “VALE CHINA” has special significance for the Group’s future development.

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China Rongsheng Heavy Industries’ 400,000 DWT VLOC Named and Launched

10 July 2011 / Page 2

Low-speed diesel engine with the maximum power manufactured in China

The 400,000 DWT VLOC launched is currently the world’s largest dry bulk carriers. It is a high-tech vessel self-developed by the Group, representing the world’s most advanced technology in very large bulk carriers. The vessel’s main engine was self-built by China Rongsheng Heavy Industries, which is a low-speed diesel engine with the maximum power manufactured by Chinese enterprise independently so far.

After “VALE CHINA” is named and launched, the VLOC is expected to be delivered to Vale soon. Mr. Chen Qiang said, “The coming year will be a significant year of delivery for VLOCs. We expects VLOC construction amount equivalent to eight vessels for

2011 and two or three vessels to be delivered in accordance with the requirements of

Vale. The Group is the first shipyard in China completing the construction of the

400,000 DWT VLOCs.”

T he largest cust o mer ’s visit as a t est imony t o t h e st rength of China Rongsheng Heavy

Industries

As the largest iron ore supplier and exporter in the world, Vale is not only one of China's major iron ore suppliers, but also the largest customer of China Rongsheng Heavy Industries. This visit fully affirmed the capability of China Rongsheng Heavy Industries in constructing very large vessel. Vale is seeking to enhance production capacity to meet the increasing demand from Asia. After the delivery of the 400,000

DWT VLOCs, Vale would be able to address the issues presented by the long voyage from Brazil to China and can then ship cargo to China and other regions in Asia with a fleet offering stronger economies of scale, thereby reducing its transportation costs.

The first China visit by Mr. Murilo Ferreira, the newly appointed Chief Executive Officer of Vale, demonstrated the high value attached by Vale to a long-term partnership with the Group. Mr. Chen Qiang said, “The revenue contribution from China for Vale is very high. The visit is built on the solid collaborative relationship among Vale and the Chinese Government as well as private enterprises. With the construction and delivery of VLOCs, the Group intends to actively explore new areas for cooperation with Vale such as helps in obtaining export buyer's credit.”

In 2008, China Rongsheng Heavy Industries signed shipbuilding contracts for twelve

400,000 DWT VLOCs with Vale, with a contract value of US$1.6 billion. The work under the contracts set three world records in carrying deadweight tonnage of single bulk carriers, total deadweight tonnage of orders and total contract value. The Group currently has orders for 16 VLOCs on hand with a total value of over US$2.1 billion. Four VLOCs amongst the 16 was placed by Oman Shipping Company.

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China Rongsheng Heavy Industries’ 400,000 DWT VLOC Named and Launched

10 July 2011 / Page 3

Photo 1: Mr. Chen Qiang, Chief Executive Officer of China Rongsheng HeavyIndustries, giving a speech in the naming and launching ceremonyPhoto 2: The naming and launching ceremony ofChina’s first-ever 400,000 DWT VLOC “VALE CHINA”

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China Rongsheng Heavy Industries’ 400,000 DWT VLOC Named and Launched

10 July 2011 / Page 4

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. Rongsheng 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:China Rongsheng Heavy Industries Group Holdings Limited

Mr. Michael Cheng Tel: (852) 3900 1822 Email: michaelcheng@rshi.cn

Strategic Financial Relations (China) Limited
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