Chinese Premier’s Surprise Visit to STX

Premier Wen tours shipyard in Dalian, promises China’s support

Chinese Premier Wen Jiabao paid an unexpected visit to the STX shipyard in Dalian, China, on Sept. 11 and received a warm welcome from STX Group Chairman Kang Duk-soo who guided him through the large shipyard, explaining to the Chinese government leader the importance of the shipyard to the STX Group’s operation. The premier rarely visits foreign companies operating in China, but made an exception in his tour of the Korean shipyard.
The shipyard, employing some 10,000 local people, produces a variety of parts for ships, including crankshafts, assembles engines and builds ships and marine plants in a diametrical linkage with other STX affiliates.
President Lee Kang-shik of the STX Dalian Engine Machine Production Sector, said Premier Wen’s visit to the shipyard may have to do with the Chinese government’s plan to develop the Liaoning Coastal Economic Belt and their desire to attract foreign investments to the region.
The government announced its plan to form an industrial belt in the northern part of China in July and approved the Tumen River development plan in line with its plan for economic resurgence in the northeast region of China.
The premier’s tour of the STX shipyard also was in line with his speech at the World Economic Forum. During his meetings with reporters following the speech, he said China would never forget those who gave their help to China, meaning that the Chinese government would provide support to foreign firms operating plants in China because they create jobs for Chinese people.
Lee said Premier Wen expressed the Chinese government’s appreciation of STX Group for its investments in China and for creating jobs for people in the Dalian region, along with his wish for the success of the shipyard, with promises of the Chinese government’s support to the shipyard and words of encouragement for STX officers at the shipyard.
Premier Wen’s visit was unannounced for security reasons and not listed on his itinerary. Chinese media reported the electrifying tour later as is the custom for them not to carry movements of Chinese head-of-state-level government officials before they are made.
A number of key local officials including Zhang Wenwei, secretary of the Communist Party in Liaoning Province, accompanied the premier during the tour.
The Korean business group broke ground for its Dalian production base in March 2007 and in April 2008, the 5.5 million square-meter base went online with the steel cutting facility and delivered the first ship built at the shipyard in April 2009. The group was able to finance the construction of the shipyard partly with local loans totaling 560 billion won, which also will cover the construction cost of its second complex right next to the current complex.
In the meantime, STX Europe, the largest shipbuilder in Europe formerly known as Aker Yards, delivered a super-sized cruiser on July 4, the second large cruiser delivered by the shipyard this year. The MSC Crociere was delivered in a ceremony at its Saint-Nazaire shipyard in France to its owner, one of the largest cruiser shipping companies in the world, and a sister ship of MSC Fantasia, delivered in December last year, which was the first cruiser delivered by STX Europe.
MSC Splendida is 333 meters in length, 38 meters in width and weighs 138,000 GT with 1,637 cabins and a crew of 1,325. The ship has room for 5,284 passengers and was built at a cost of 550 million euro or 1 trillion won.
The ship has 150 water fountains, a swimming pool in its Aqua Park, a theater, spa, gym and shopping facilities on board. The ship has air conditioners that are 30 percent more energy efficient and highly upgraded wastewater treatment facilities built with revolutionary environmentally-friendly construction methods.
The company changed its name to the current one in November 2008 after STX Group firmly took control of Aker Yards, its former name, and integrated it into the Korean conglomerate. The shipbuilder has five yards in Finland and France, where cruisers and ferry boats are built. All cruisers ranked from first to 14th in tonnages were either built or are being built at STX Europe shipyards.
At the end of October, the shipyard will be ready to deliver a 220,000 GT cruiser, the largest in the world, named Oasis of the Sea from its shipyard in Finland. Its sister cruiser, the Allure of the Sea, will be completed in 2010. nw

Chinese Premier Wen Jiabao, 3rd R, and Chairman Kang Duk-soo of the STX Group, 4th R, are pictured together in this photo taken during the Chinese official’s visit to the SXT Shipbuilding yard in Dalian, China, Sept. 11.