President Hu Jintao of China presided over the handover of the Liaoning in Dalian on Sept. 25. (Photo/Xinhua)
The Dalian shipyard of China Shipbuilding Industry Corporation has made huge profits from refitting the aircraft carrier Liaoning for the PLA Navy, reports by Guangzhou-based 21st Century Business Herald.
Originally named the Varyag, the Soviet-era Admiral Kuznetsov-class carrier was purchased in 1998 from Ukraine. After its delivery, China Shipbuilding Industry Corporation has been responsible for the refit and upgrade of the carrier since 2005. Now named the Liaoning after the northeastern province where it has been based, the carrier was turned over to the Chinese navy on Sept. 25 by the shipyard.
Officially the Dalian Shipbuilding Corporation, the Dalian shipyard is a subsidiary of China Shipbuilding Industry Corporation based in Beijing, which made 1.3 billion yuan (US$201 million) in the first half of 2012 with a profit margin of 23.33%. The excellent job done by the shipyard on the Varyag has been the main key to its success.
Having constructed 820 vessels of 44 different types in the past, Dalian was chosen to refit the carrier due to its reputation as the leading designer of China's naval surface ships.
China Shipbuilding Industry Corporation currently owns 46 companies and 28 research institutes and employs 14,000 staff. Though orders from overseas have been down this year, contracts from the Chinese government and military have kept the company firmly in the black.