7825 June 2012

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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 show in CIFTIS

Signing ceremony for strategic cooperation agreement

COSCO Shipyard exhibit in POSIDONIA 2012

President visits Dutch and Greek ship ownersOn June 6, Mr. Wang Yuhang, the

President of COSCO Shipyard Group and Mr. Han Guomin, the President of COSCO Shipping, singed the two company’s strategic cooperation agreement. Mr. Ye Weilong, the Vice President of COSCO Group and other leaders from the two companies co-witnessed the moment.

The cooperation agreement aims COSCO instruction of “Enterprises in COSCO should make concerted efforts to overcome difficulties brought about by the financial crisis.” The signing ceremony signals the cooperation between the two companies has entered a brand-new phase and will maximize COSCO Group’s interest.

The world’s most prestigious mar i t ime event , POSIDONIA 2012, took place from 4-8 June in Athens attracting more than 1870 exhibitors from 87countries and regions around the world.

As one of the world’s most famous ship repairers and ship builders, COSCO Shipyard took the opportunity to strengthen its enterprise brand publicity and enhance its influence. Equipped with a large screen DVD and very contemporary IPAD facility, the booth attracted many ship owners from home and abroad.

The g roup l ed by M r. L i Rong, the Managing Director of COSCO Shipyard Commerc ia l H e a d q u a r t e r s , w a r m l y welcomed customers, deepened communications with ship owners, classification societies and agencies and laid a good foundation for future cooperation.

From May 21 to 25, a group led by Mr. Wang Yuhang, the President of the COSCO Shipyard Group, visited customers in the Netherlands and Greece. The visiting group exchanged ideas, with more than ten ship owner companies from the two countries, concerning the world economy and international shipping markets.

During the visit, Mr. Wang Yuhang outlined

the latest developments taking place in the COSCO Shipyard Group and its subsidiaries and discussed associated projects with the ship owners. They also had a deep discussion about further cooperation between COSCO Shipyards and the ship owners, in terms of ship repair and conversion, ship newbuilding and offshore engineering.

The China Beijing International Fair for Trade (CIFTIS) was held from May 28 to June 1 at the China National Convention Center with the theme of “Trade in Services: New Vision, New Opportunities and New Development”. Mr. Wei Jiafu, as the Chairman of the China Association of Trade in Services ("CATIS") and President & CEO of COSCO Group, attended and spoke at this, the first CIFTIS event. Mr. Wang Yuhang, the President of the COSCO Shipyard Group, accompanied Mr. Wei Jiafu to view the “SEVAN 650”- the ultra-deepwater cylindrical drilling unit made by COSCO Shipyard and reported our company ’s development of our offshore engineering ability.

Def ined as a state- level , international and comprehensive fair for trade in services, the CIFTIS currently figures as the only comprehens ive t rad ing platform in the world covering the 12 sectors of trade in services defined by the WTO. It consists of six sections, including the opening

ceremony and summit forum, high-level forums, business talks, comprehensive exhibition, theme day activities and authoritative

information release. Based on exhibit ions and professional conferences, the CIFTIS wil l focus on bus iness matching

and project-based discussions, aiming to promote exchange and cooperation between Chinese and foreign services trade companies.

Newbuilding2

57,000DWT BULK CARRIER

Naming ceremony of N218O n M a y 3 1 , a n a m i n g

c e r e m o n y f o r t h e s e c o n d 57,000DWT bulk carrier, being built for CONTI GROUP, was held in COSCO Guangdong Shipyard. The Godmother, Mrs. Ghislaine Bouttier named the vessel “Conti Fuchsit”.

Mr.Josef Obermeier, the Vice President of CONTI Shipping, Mr. Didier Bouttier, the Vice President of BV International company, Mr. Hartmut Hollenbach, the G. M from the ship owner’s supervision company, together with onsite supervis ion representat ives, leaders of COSCO Guangdong Shipyard and workers from the

Summer activities to promote cooperation and friendship

Both “Iron Man” and “Ore Hansa”, managed by Maryville Maritime Inc, have been repaired a t the same t ime in COSCO L ianyungang Sh ipyard. The owner and the shipyard have been cooperating with each other for several years. The owner’s representa t i ve , Mr. Andreas Andriopoulos, was quite satisfied with shipyard’s performance during his previous experience in the yard, especially in the areas of quality and efficiency.

Mr. Andreas Andriopoulos told us that they would award another vessel, MV “Coal Age” to the yard

for repair on 30th, June. The ship-owner was extremely satisfied with the shipyard’s engineering and work performance in areas such as quality control, safety management and repair schedule control. As a result, he continues to choose the yard as their ship repair partner. Every time he visited the yard, he has been able to see an improvement in services compared with that for the previous vessel. In his opinion, production control and safety control must be tied together. At the end of th i s interview, he said that he has been to many other shipyards and found COSCO shipyards to be superior. He hoped to continue his long-term cooperation with COSCO Lianyungang Shipyard.

Maryville Maritime Inc is one of the yard’s most loyal customers. So far this year the owner has awarded four repair contracts to the yard.

Recently, COSCO Zhoushan Shipyard organized all ship owners to attend a Friendship Weekend Leisure Activities - BBQ.

Ship owners from as far field as China, India, Greece, the United States, the Netherlands and other countries participated in this activity. Ship owners enjoyed this rare leisure time opportunity. Some kicked football, some enjoyed the sight of the sea, some took pictures, and some showed off their barbecue skills. Everyone enjoyed themselves

at the activity site and released pressure during this special weekend. They were very satisfied and grateful to our company for arranging the special event and our good service and cooperation very much helped them enjoy themselves. They really hoped that we would have more opportunities to cooperate once again in the future.

We believe that every bit of effort we make for our clients will be rewarded through our future business.

Zhen He Repaired in COSCO GuangdongThe 3800 TEU container vessel

“Zhen He”, owned by COSCO Conta iner L ines Co.,Ltd., i s currently under repair in COSCO Guandong Shipyard. The vessel has been in the yard from 14th of March to 7th of June because of collision damage. The main repair scope consisted of: steel renewal repairs, comprising a

total of about 1000Tonnes, on the starboard side of No6&7 cargo holds, No7 double bottom tank, No 5 wing tank, No 6&7 hatch coamings and hatch cover etc.; repairs to the ballast system, bilge system, fire system, and tail-shaft alignment and repairs of some electrical and control systems. New blocks consisting of 12pcs

were fitted whilst in dry dock from 1st to 21st of May. The heaviest b locks were approx imate ly 90T. After undocking the yard conducted painting and systems tests. The job was completed on 7th of June and the vessel sailed on 8th of June. The project team was fully successful in meeting the owner’s requirements.

Interview with Mr. Andreas Andriopoulos from Maryville Maritime

Safety month activities start in COSCO Shipyards

As Safety Month falls in June, all subsidiaries of the COSCO Shipyard Group organized their employees and subcontractor workers to get involved and participate in Safety Month activities. Safety knowledge contests were held to keep staff conscious of and alert to the potential safety hazards

associated with their work, safety seminars and trainings, such as Behavior-Based Safety (BBS) were carried out to highlight risk management techniques, enhance safety awareness, eliminate hidden troubles and improve the overall risk management levels to prevent incidents from occurring.

Safety technique contestBBS training

construction team co-witnessed the moment.

At the ceremony, Mr. Huan Yueshi, the vice president of COSCO Guangdong Shipyard

expressed his appreciation for the trust and support given by CONTI Shipping, especially under the situation of shipping market downturn.

Offshore 3

Sea Installer undocking

GM4000 starts commissioning

”Octabuoy” completedthe Blister block erection

Football game with ship owners

On June 25, the first wind turbine installation vessel, N370, being designed and built for the Danish owner A2SEA by COSCO Nantong Shipyard, smoothly undocked in COSCO Qidong. Since its docking, the yard has successful completed erection of the 880tonne capacity main

crane, installation of four pile legs of 80m height and is starting commissioning tests of six generators. After undocking, the load test of the generators, commissioning of the main crane and pile leg elevating system and other auxiliary systems will be carried out preparing for sea trails.

Semi -submers ib le d r i l l i ng platform GM4000 has now entered into its commissioning phase. Since the test and commissioning of hydraul ic p ip ing systems, the GM4000 project team has overcome various diff icult ies,

completed the pumping and flushing of al l piping systems and assisted the ship owners to finish the HPU system checking and pre-commissioning. After commissioning, the project will be on target for a smooth delivery.

After a two-month’s construction period, the project” Octabuoy” in COSCO Nantong Shipyard has recently completed its “Blister

block” erection. The weld qualification rate was 100% which gained time for the outer plate painting.

Keel laying of N407N407, the Letourneau Workhorse Jack-up rig has completed keel laying

of 53 blocks (of a total of 77). The main hull has begun to take shape.

On June 10, the s e c o n d O f f s h o r e Footbal l Game was h e l d i n C O S C O Nantong Shipyard. 184 members from work shops were selected and divided into twenty teams. The yard also invited 32 ship owners and ship surveyors to participate in the game s o a s t o e nhan c e t h e e n t e r p r i s e ’ s c l ient relat ionships and better serve the customers.

Ship Repair & Conversion4

Delivery ceremony of “Geudongdong” Conversion to FSO

COSCO Nantong reinforce its reputation in Norway market

Five vessels’ successful repair for Maersk Line

Fol lowing is a le tter of appreciation sent by Wilhelmsen Marine Services following a successful docking at COSCO Nantong Shipyard in April / May this year.

They also appreciated the good work performed on this project and are very interested to cont inue with the good cooperation with the yard in the future.

As the world’s largest ocean carrier who recognized as the most reliable container shipping company, Maersk line demands high standards for ship repair in techn ica l terms, qua l i ty control and overall schedule performance.

The main repairing job of the five vessels naming “Maersk

On June 18, COSCO Guangdong Shipyard held a delivery ceremony for a tanker-to-FSO conversion project for the Indonesian owners, Pertamina Shipping. Mr. Suhartoko, the Executive Director of Pertamina Shipping, and Mr. Huan Yueshi, the Deputy G. M. of COSCO Shipyard signed the delivery contract. The successful delivery of the project announced to the world that COSCO Guangdong Sh ipyard is able to provide its offshore customers with a one-stop service: Design, Procurement, Construction and Commissioning.

Mr. Zan Shuming, the General Engineer of the COSCO Shipyard Group, Mr. Lirong, the Managing D i rec tor o f COSCO Sh ipyard Commercial Headquarters, Mr. Suhartoko, and Mr. Eddy Purnomo,

the Operations Director, Mr. Ueda, the President of Class NK, and Mr.Ibnu Wibowo, the President of BKI were among 200 people who co-witnessed the big moment. As the first FSO project operated by Pertamina Shipping, after conversion, “Geudongdong” is now able to contain 60,000 barrels of oil, accommodate 150 passengers and has a heli-deck facility as required by the customers.

“Geudongdong” measures 258.333m in length, 41.6m in width, 19.7m in depth and has a scantl ing draft of 12.894m. The conve r s i on p ro jec t has greatly improved the enterprise’s c o o r d i n a t i n g a b i l i t y i n t h e processes of design, procurement, construction and commissioning.

The longest ship sails from COSCO Dalian

“Perla Bulker” repaired in COSCO Zhoushan

On May 4, the vessel “Al Qibla”, owned by the United Arab Shipping Company (UASC), sailed slowly from COSCO Dalian Shipyard. At 366m in length, “Al Qibla” is the longest ship to be repaired by the COSCO Shipyard Group.

UASC owns and operates a fleet of 48 ships, which are all maintained to the highest industry standards. All UASC vessels are classified as Lloyd's +100A1.

The repa i rs were f in ished successfully one day ahead of schedule and the work was highly commended by the ship owner.

On the morning of June 4th, the Mitsubishi Ore Transport (MOT) ship “PERLA BULKER” was ready to sail following 2 hours of sea trails at COSCO Zhoushan Shipyard. During a 7-day repair period, all the job items were successfully completed and the ship owner was highly appreciative.

The main tasks for this vessel were hul l paint ing, ta i l -shaft

withdrawal and renewal of seal and other maintenance items. During the dry-docking time, although the vessel’s main job was very affected by the rainy weather and other external factors, the shipyard ship repair management team worked very hard to finish all jobs in time.

On the afternoon of June 4th, Mr. Tomioka San, Director of MOT, came to visit our shipyard and was

surprised to see the general scale of our facility. He expressed his happiness to see the big change of the shipyard comparing to his last visit 4 years ago, highly praised the yard’s excellent repair and new building service, and said that he would bring more vessels to COSCO Zhoushan Shipyard in the future.

Kushiro”, ”Maersk Sentosa”, ”Maersk Serangoon”, ”Maersk Sembawang” and ”Mae r sk Tanjong” have included boiler installations, bottom sea damage repair and shell plate coating.

The yard’s successful repairing work has won the owner ’s representative and Maersk’s full satisfaction and praise.

The yard had a good cooper-ation with Maersk Line and these five vessels’ successful repair also laid a solid foundation for successive orders. Base on their posit ive experience, Maersk are sending a future five more vessels to the yard for repair.

Attached is the acknowledg-ment letter issued by the yard’s good client.