NACKS’ Second Shipbuilding Dock Completed in China

Tokyo, May 8, 2008 — Kawasaki Shipbuilding Corporation announced today that Nantong COSCO KHI Ship Engineering Co., Ltd. (NACKS), its joint venture with China Ocean Shipping (Group) Company (COSCO), has completed construction of its second shipbuilding dock which began in December 2005 and started building the first very large ore carrier (VLOC) for COSCO.

In order to meet increasing demand for large-size commercial vessels in China and other countries, NACKS constructed the second shipbuilding dock as part of its second expansion phase using a 500,000 m² piece of property adjacent to its existing shipyard. The 500-meter-long and 80-meter wide dock is equipped with five cranes including two 800-ton gantry cranes that can handle larger size pre-assembling blocks for enhanced productivity.

In addition to the construction of the second shipbuilding dock, the phase two expansion project involves expansion and enhancement of the cutting, sub-assembling and painting shops as well as the extension of an outfitting quay from 540 meters to 920 meters. The extended outfitting quay will enable the simultaneous outfitting of two large-size ships and significantly increase shipbuilding capacity.