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State-owned China State Shipbuilding Corp and Italian shipbuilder Fincantieri Cantieri Navali Italiana SpA will establish a joint venture in Hong Kong. The joint venture will spend RMB 25 billion (USD 3.74 billion) building five luxury cruise liners. CSSC will take a 60% stake in the new company, while the Italian side will hold the remaining shares. The money will come from an industrial development fund for cruise liners from five Chinese banks, including Bank of China, Agricultural Bank of China and China Construction Bank, according to CSSC. Under the framework, Shanghai Waigaoqiao Shipbuilding Co, a subsidiary of CSSR, will be responsible for building the liners. Chen Gang, vice-president of Shanghai Waigaoqiao Shipbuilding, said each of these ships displaces 133,500 tons and their length will exceed 300 meters. Each ship will cost around RMB 5 billion to build. A cruise liner is the result of the combination of many technologies. Up to 75% of the value of a cruise liner is handled by subcontractors. |
