COSCO Celebrating Twenty Years history of Commercially Centralized Operation
The Twenty Years history of Commercially Centralized Operation -- Celebrating the 20 years anniversary of Commercially Centralized Operation by COSCO Shipping Heavy Industry Co., Ltd
In June 2001, COSCO Group integrated and reorganized its ship repair enterprises as COSCO Shipyard Group Co., Ltd. was founded. By the end of October 2002, COSCO Shipyard Group set up the commercial headquarters in order to improve the marketing efficiency. This was the beginning of "Commercially Centralized Operation".
At the end of 2016, COSCO Shipping Heavy Industry Co., Ltd was founded, merged by COSCO Shipyard Group, COSCO Shipbuilding Industry and China Shipping Industry. The Commercially Centralized Operation model continued being implemented.
In October 2022, the Commercial Headquarters celebrated the 20th anniversary of its establishment and operation. From a ship repairing company, to a shipping and offshore industry combined enterprise. The Commercial Headquarters has made positive contributions to the enterprise's innovation and development.
The birth of Commercially Centralized Operation
When COSCO Shipyard Group was established, with the accelerated pace of China's reform, the rapid development of import/export trade giving a strong impetus to shipping and related industries, as well as the advantages of China in terms of labor costs, the center of international ship repair market gradually shifted to China. After China's accession to the WTO, it has accelerated its integration into the world economy and the Chinese ship repair industry has ushered in unprecedented development opportunities.
In order to build up competitive advantages in the international market and narrow the gap with advanced ship repair enterprises in the world, COSCO Shipyard has put forward the working idea of "eight unifications", among which "Commercially Centralized Operation" is the most important. On August 8, 2002, Commercial Headquarters was established in Shanghai and became fully operational at the end of October. This is not only a brand-new operation platform, but more importantly, a brand-new operation concept from the height of intensive operation and management. In the process, the company's products have been continuously adjusted to meet the needs of its customers, and all ship repair enterprises also take it as their responsibility to maintain and enhance the centralized brand image of COSCO SHIPYARD. We fully share talents, technology, information and resources, so that customers can always feel that the "COSCO SHIPYARD" brand is powerful with real high-quality service. It did a good job of information exchange between the Commercial Headquarters and the production system, and extended the service chain to on-site service for ships.
After the establishment of COSCO Shipyard Commercial Headquarters, it has increased its efforts to develop the mainstream ship repair market and core customers in countries worldwide. The brand "COSCO SHIPYARD" has won the favor and trust of many world-famous shipping companies.
The commercially centralized operation, the improvement of production capacity and the perfection of technology have enabled COSCO Shipyard to usher in a new round of development. The quantity, efficiency, quality and profitability are all far higher than those of its peers, making it the leader in China's ship repair industry. In the national ranking of ship repair enterprises, all of which belonging to COSCO Shipyard are ranked among top ten.
Business upgrade: shipping and offshore industry
In the following years, COSCO Shipyard made every effort to promote its product transformation and upgrading strategy through a series of measures such as strengthening infrastructure construction, establishing technical teams, realizing process re-engineering and expanding customer markets. Under the hard work and pioneering efforts of the Commercial Headquarters, COSCO Shipyard has achieved three important business upgrading: ship repairing and conversion, ship newbuilding and offshore engineering.
A number of shipbuilding orders were started, and a series of branded products of bulk carriers, shuttle tankers and special ships were gradually formed. Many large international offshore orders were successfully secured and delivered, achieving full coverage from shallow sea to deep sea, including drilling, production and various offshore support projects. The company has made significant breakthroughs in FPSO conversion projects, winning and completing new and large orders. It also has the largest market share in FPSO conversion among Chinese shipyards, making it the No.1 FPSO conversion factory in China.
The Commercial Headquarters has always adhered to the concept of serving customers and creating value, which has made important contributions to the development of the enterprise. The concept and practice of "Commercially Centralized Operation" have been constantly creative, assisting the steady development of the enterprise's operation and production, enhancing its brand image and forging its core competitiveness.
Innovative development of business strategy
COSCO Shipping Heavy Industry CO., LTD (also referred to as CHI below). was reorganized and established in Shanghai in December 2016. In accordance with the overall deployment and work requirements of CHI, the Commercial Headquarters has achieved year-on-year growth in the number of orders received. Since the establishment of CHI, the average annual compound growth rate of orders received by the Commercial Headquarters is as high as 8%.
CHI's customers are located in more than 100 countries and regions around the world. While receiving orders, the Commercial Headquarters works with shipyards to provide a full life cycle of services from construction, conversion, maintenance and repair. In China, CHI has become the preferred partner of the world's leading shipping and oil companies.
In recent years, in the face of corona virus, the complex international situation and the confusing economic environment, all the staff of CHI Commercial Headquarters have been taking the initiative trying to overcome various difficulties and pushing forward the work in an orderly manner. The "Commercially Centralized Operation" has become an important foundation for the development of the enterprise, it maintained the steady operation of CHI during the market fluctuations, and has continuously made new breakthroughs.
CHI has undertaken a lot of order series including large container ships, bulk carriers, pulp carriers and various types of special ships. Meanwhile the self-designed products become serialization. The ship repair and conversion business strived to move into the field of high value and high tech area, and achieved new breakthroughs in the repair of LNG carriers, luxury cruise ships and other special vessels. The offshore products covered all types from shallow water to deep water, and orders for offshore modules were extended from offshore to onshore. a total of 83 offshore projects and 80 module projects have been delivered successfully, many of which are world firsts and international high-end products. New breakthroughs have also been made in the field of FSRU, FPSO, new energy for offshore wind power installation, as well as in the construction of serial and multi-functional modules, etc. We have achieved a new leap in the EPC of FPSO, a total of 21 FPSO conversion projects delivery with the world's largest market share. The research and application of key technologies for large exhaust valve stems for marine low-speed diesel engines broke through the monopoly of foreign technologies. New products and services such as FGSS, methanol boilers and LNG gas system maintenance and repair followed the global trend of decarburization, providing more choices for customers and partners.
Green and low-carbon have become the new trend in the development of the shipping industry. The Commercial Headquarters actively promoted the development of the new energy business market, explored and promoted energy-saving and environment-friendly ship types and new energy power upgrades for the fleet. Methanol-powered, battery-powered and ammonia-powered projects are steadily progressing. In the ship repair business, we obtained LNG dual-fuel and LPG dual-fuel conversions. In the offshore business, we undertook high level wind turbine installation ships which applies the larger windmill. The Commercial Headquarters will grasp the new opportunities for the new energy business, and make its due contribution to the continued profitability of CHI.
Over the past 20 years, we have encountered and overcame many obstacles. The Commercial Headquarters has received over hundreds of billions of CNY worth of orders, which has made an important contribution to the steady development of the enterprise's operation and production.
The future is promising. Under the leadership of COSCO Shipping Corporation Group and the guidance of COSCO Shipping Heavy Industry, the Commercial Headquarters will move forward firmly and strongly. To provide engineering support for our strong maritime nation, to serve quality services for global customers and to create a bright future for the development of CHI - this is the everlasting pursuit of all marketing staff.
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