CSSC Chengxi Achieves Double Over Half

Zhang Yimou

The year 2019 is an important year for the implementation of the “11th Five-Year Plan for CSSC Chengxi Shipyard Co., Ltd., and the key year to promote the implementation of the outline for high-quality development strategy.In the first half of this year, CSSC Chenxi cadres and workers closely centered on the “break-up, integration, improvement and development” management policy,adhered to the overall tone of making progress while maintaining stability,persisted in the structural reform on the supply side as the main line, focused on the “benefit and efficiency”, boosted the “1+9” management improvement,went all out to ensure the delivery, went ahead steadily and surely to increase benefits. The goal of “half time, half task” was fully realized, laying a solid foundation for completion of the yearround task.

According to the Outline of High Quality Development Strategy of CSSC(2018-2050), based on the reality of enterprises, CSSC Chengxi High quality

Development Strategy Outline was prepared and issued in H1 2019, which defines the high quality development policy of “one center, two layouts,four industries, four bases and five breakthroughs”, and formulates the road map and timetable for the high quality development of CSSC Chengxi. Secondly,in the face of the severe tests such as the sustained downturn of the market, the shift of the three docks, the heavy production tasks and the increasing pressure of cost control, CSSC Chengxi comprehensively promoted six major campaigns --“industrial development, market exploitation, cost reduction and efficiency increase, quality improvement, technical support, and party building guarantee”,fully achieved the goal of “double more than half”, with repairing ships,shipbuilding and applying industries all maintaining a steady growth momentum.From January to June, the company achieved sales revenue of 54.48% of the annual plan, a year-on-year increase of 29.96%, and operational order taking was 55% of the annual plan.

Unite to Expand Market

Amidst the “normality” of the sustained low operation of international ship prices in 2019, CSSC Chengxi maintained its objectives and taps market bravely, laying a solid foundation for the completion of all the objectives and tasks of the whole year.

In the aspect of shipbuilding business, CSSC Chengxi has insisted on taking “main ship types” and“advantageous ship type sectors” as the marketing focus, striven to make a breakthrough in the market segmentation during the downturn in the bulk carrier market, and successfully undertaken the construction order of three self-unloading ships of two types, and the self-unloading ship brand is once again recognized by the market.

In the aspect of ship repair business, CSSC Chengxi has grasped the production rhythm, caught highquality orders, undertaken 170-ship repair orders, completed 128.5% of the annual plan in terms of contract value,and finished the whole-year business objective tasks in only half a year. The proportion of the received “double high” projects is 67%; the installation of the desulfurization unit has become a new bright spot, and it has undertaken installation projects of more than 50 desulfurization towers and more than 80 ballast water treatment devices. At the same time, the company has made efforts to improve the retention rate of the core customers and carried out series ship orders in batches involving 102 ships for key customers.

In the aspect of application industry business, CSSC Chengxi has continued to consolidate its strategic cooperation with key customers, made every effort to develop high-end customers,undertaken wind power tower orders,completed 87.55% of the annual task,signed contracts with two famous wind power companies involving 64 sets of offshore wind towers, realized the goal of receiving offshore wind tower orders in batches for the first time, and made it a new economic growth sector in the application industry.

Go All Out to Ensure Delivery

In the first half of the year, 82,000-ton series bulk carriers, 64,000-ton series wood chip carriers, 56,000-ton chemical tankers, 40,000-ton self-unloading vessels and 70,000t-ton wood chip carriers were continuously built, showing the situation of high material quantity and high yield operation. The company accumulatively delivered 11 new ships,completed 68.75% of the annual plan,and the implementation rate of the major shipbuilding nodes was 100%. While ensuring the main line of delivery, CSSC Chengxi has continuously promoted the production management to a new step, and the shipbuilding production cycle is a new record. Of these, the “No.21”8,200-ton bulk cargo ship created the 82,000t bulk carrier 48d fastest shipway record for CSSC Chengxi, the “No.20”8,200-ton bulk carrier created the 74d shortest wharf commissioning record.

CSSC Chengxi ship repair system took “sparing no time during the docking period, guaranteeing sail schedule” as the core, completed and delivered 109 ships / 5.68 million deadweight tons,the average conventional docking period decreased by 7.8 hours compared with the same period last year, with only 5 months,the repair order and the realization of output value were achieved in advance of“double more than half”. In the H1 ship repair production, the desulphurization unit installation project was the most important item. Under the influence of the new IMO regulations, the demand for desulphurization unit adaption will increase considerably for a long time in the future. CSSC Chengxi, as the large backbone ship repair enterprise of CSSC,has taken the initiative to stand up to the tide and grasp the market opportunity of “energy saving and environmentfriendly” desulphurization adaption and set up the brand advantage in the new desulphurization unit project. In H1 2019,CSSC Chengxi completed the installation of desulphurization units on 14 ships and ballast water treatment units on 37 ships,among which the Austrian ship broke the fastest production record of 30 days for the newly installed desulphurization unit. CSSC Chengxi not only did a good job of ship modification project, but also extended the industrial chain to the manufacturing link of desulphurization tower, and officially put into the production line of desulphurization unit in Chengxi Xinrong Company in March this year. The desulphurization unit production workshop covers an area of more than 3000 square meters, equipped with 3000 watt laser cutting machine, plasma automatic welding and other series supporting equipment and facilities, with an annual capacity of more than 50 desulfurization units.

In the first half of the year,CSSC Chengxi turned out 161 sets of wind power generation towers, delivered 229 sets of wind power generation towers, and all wind power generation tower projects under construction completed the planned schedule. At the same time, the company fully coordinated the resources of the headquarters and the Yangzhou company,made real production preparation,continuously improved the production efficiency of the wind power generation tower, and basically realized the monthly production goal of 10,000t steel structures.

Go Ahead Steadily and Surely to Increase Benefits

While making efforts to ensure the delivery and explore the market,CSSC Chengxi did more home work,promoted and pushed the implementation of the cost-reduction and efficiency improvement measures through management, and boosted the continuous improvement of the quality of the economic operation.

CSSC Chengxi did everything possible to expand the aggregation,strictly control each link, and deeply tapped the potential to expand the space of cost reduction. It continued to work deeply, guided by efficiency and benefit,comprehensively promoted the assessment of the five sectors; strengthened budget management, guarded against exchange rate risk, increased capital income; reduced external maintenance costs, strictly controlled outbound payment of dynamic energy costs;vigorously optimized the team structure,comprehensively improved labor productivity; optimized posts and staffing,did a good job of labor balance work, and improved the labor productivity of the whole staff. CSSC Chengxi continuously promoted lean management, deepened“Modeling 2.0”, improved shipbuilding production efficiency, optimized process technology to improve work efficiency,promoted intelligent manufacturing to improve work efficiency, promoted fine dispatch to improve work efficiency,strengthened production project process control, improved output efficiency. With the further development of the control measures of “cost engineering”,the company took the quantitative target index set in the cost engineering scheme as the guide, refined the target,clarified the responsibility, increased the assessment reward and punishment to the cost control, further strengthened the whole staff cost consciousness,realized whole-staff, whole-factor and whole-process cost control, and ensured the implementation of each cost measure.