Government Approves Shipyard Expansion in China

 Tokyo, August 4, 2005 – Kawasaki Shipbuilding Corporation announced today that the Chinese government has recently approved plans to expand a shipyard in Nantong operated by Nantong COSCO KHI Ship Engineering Co., Ltd. (NACKS), a joint venture of Kawasaki Shipbuilding and China Ocean Shipping (Group) Company (COSCO). The 2 billion yuan project involves construction of a new dock for very large crude carriers (VLCCs) with two 800 ton gantry cranes, and an extension of an outfitting quay on a 500,000 m² lot adjacent to the current shipyard. The expanded shipyard, which will build large commercial vessels mainly for China, is scheduled to be in operation by 2008.