A 300,000-ton dry dock with corresponding chute and quay is to be built with the total investment of USD100 million, which can build and repair large-scaled oil vessel, bulk cargo vessel and marine heavy equipment. The products include luxurious yacht, offshore engineering vessel, steel- structure engineering vessel, various types of cargo vessel, oil vessel, special purpose vessel as well as outfitting, matching equipment and auxiliary parts. When the project is put into operation, the annual output will be USD180 million. Cooperative Mode: sole foreign-funded, JV or cooperation. The investment payoff period is predicted to be 6 years.

With the development of world economy and increase of international trade, the volume of sea transportation has been increasing successively. A large number of old vessels need to be renewed. In the next few years, the annual average business volume of new vessels in the world will reach 40 million tons. The capacity of vessel’s maintenance market is increasing by 10% every year. China has issued in succession some corresponding preferential policies to support the development of domestic vessel industry. Penglai, also makes the harbor industry as one of its four pillar industries and provides preferential policies. The natural conditions of Penglai, such as climate, terrain and landform, geological structure, are very favorable for the development of shipbuilding industry. More importantly, the deep-water bank along Penglai coast is as long as 20km, which is suitable to build deep-water berths and develop shipbuilding industry. With broad harbor, good sheltering and cheap land price, the dock is endowed with favorable conditions for offshore heavy industry and shipbuilding. The inshore sea area of Penglai is near to Yantai international sea-lane. The depth of nearby sea-lanes is over –18m, which is a good navigating condition. There are 4 shipbuilding enterprises engaged in the business of ship building and repairing for many years with a team of professional managing and engineering personnel.