The Changxing shipyard's first-phase, including four docks on the 3.4-kilometer coastline, is scheduled for completion by 2008.

It will then be home to the over 140-year-old Jiangnan Shipyard, the oldest existing shipbuilder in China. After shifting to Changxing, it will be twice its present size, and have an annual production capacity of 4.5 million DWTs in 2010, company official Zeng Ming said.

"Local shipyards' expansion on the two islands will surely raise the city's total production, and the growth in the shipbuilding industry will help stimulate other industries, such as machinery and electronics," said Yang Qi, professor of Shanghai Jiaotong University's School of Naval Architecture, Ocean and Civil Engineering.

The international shipbuilding base has gradually shifted from Europe to East Asia, because of lower management and labor costs.

China's total ship production touched 14.52 million DWTs last year, or 20 percent of the global production, Xinhua said. That made the country the biggest shipbuilding base in the world after South Korea and Japan. And some experts say China could overtake the two countries by 2015.

"The gap between China and the top two is shortening as Chinese shipbuilders keep improving their management and technologies. The Changxing project will be a big shot in the arm." Yang said. "And Shanghai will continue to lead the domestic shipbuilding industry because it is home to the major shipyards."

1

2

(For more biz stories, please visit Industry Updates)