Cheoy Lee S h i p y a r d s Company profile Pioneering shipbuilder Cheoy Lee Shipyards has three strategic company locations. The company’s head office is located in Hong Kong, the main construction centre is in Zhuhai, China (a short ferry ride from Hong Kong), and a Florida branch is utilised for equipment purchasing and yacht sales in the United States. The Zhuhai site, named Hin Lee (Zhuhai) Shipyard, was established by Cheoy Lee in 1997 and was fully operational by September, 2000. According to Cheoy Lee, the return to mainland China after six decades of construction in Hong Kong was “a significant milestone in the history of the yard, unleashing the potential for cost competitiveness and expansion that the company duly seized”. A crucial factor in the success of this relocation was Cheoy Lee’s commitment to maintaining first-rate construction and build quality in tandem with the competitive labour market. This was achieved without the negative consequences of sweeping cost cutting or outsourcing. Hin Lee (Zhuhai) Shipyard occupies an area of 115,000 square metres, with an undercover construction area of 53,000 square metres. The facility is divided into three distinct zones based on construction/fabrication materials, with segregated areas for FRP, aluminium and steel shipbuilding respectively. The modern facility caters to the construction of an assortment of vessel types, from oceangoing tugs to mega-yachts ranging from 15 to 70 metres in length. The company employs approximately 1,000 certified and skilled workers, with senior technicians and management hailing from the United States, the United Kingdom, Singapore and Hong Kong. Vessels are constructed under survey to ABS, DNV, BV, LR, CCS, or other requirements where required and marketed worldwide. History Cheoy Lee’s history stretches back to a facility named Ah Chang and Company located at Po Tung Point in Shanghai. As well as building new vessels, Ah Chang and Company had contracts to maintain the large fleet of inspection launches operated by the Shanghai Customs service. With steam being the primary means of propulsion of the times, the yard also built boilers and engines. Run by the same family ever since, the operation moved to the then-British territory of Hong Kong in 1936 at the outbreak of the Sino-Japanese War. Initially established as Chean Lee Company in Hong Kong, the company specialised in the installation of mechanised propulsion systems on sailing cargo vessels to break through the Japanese blockade. The Japanese, however, soon increased the capabilities of their own fleet, to the point where new types of vessels were required. The fledgling Chean Lee Company, lacking the required facilities, was subsequently forced to close down. In 1940, one member of the family (the father of all eight of the currently serving Cheoy Lee management board), purchased a plot of land in Kowloon and established Cheoy Lee. Following World War II, the demand for coastal cargo vessels was high, and by the mid-1950s Cheoy Lee had diversified into the production of teak sailing and motor yachts, mostly for export to the United States. It was during the 1960s that Cheoy Lee became one of the pioneers in the development, testing and use of FRP boat construction. Not long thereafter, wood construction was phased out. Constantly Completed earlier this year, the Robert Allan-designed 32 metre ASD tug 'GPC Tesoro' left Hong Kong in January on a delivery voyage across the China Sea and the Pacific Ocean to a South American client Cheoy Lee's Zhuhai shipyard was established in 1997 to take advantage of mainland China's local shipbuilding expertise and competitive labour market June 2013 WORK BOAT WORLD 16 16 17 Cheoy Lee Shipyard P:Layout 1 9/5/13 3:45 PM Page 16
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Cheoy Lee S h i p y a r d s
Company profile
Pioneering shipbuilder Cheoy LeeShipyards has three strategic companylocations. The company’s head office islocated in Hong Kong, the mainconstruction centre is in Zhuhai, China (ashort ferry ride from Hong Kong), and aFlorida branch is utilised for equipmentpurchasing and yacht sales in the United States.
The Zhuhai site, named Hin Lee (Zhuhai)Shipyard, was established by Cheoy Lee in1997 and was fully operational bySeptember, 2000. According to Cheoy Lee,the return to mainland China after sixdecades of construction in Hong Kong was“a significant milestone in the history of theyard, unleashing the potential for costcompetitiveness and expansion that thecompany duly seized”. A crucial factor in the
success of this relocation was Cheoy Lee’scommitment to maintaining first-rateconstruction and build quality in tandemwith the competitive labour market. This wasachieved without the negative consequencesof sweeping cost cutting or outsourcing.
Hin Lee (Zhuhai) Shipyard occupies an area of 115,000 square metres, with an undercover construction area of 53,000 square metres. The facility is dividedinto three distinct zones based onconstruction/fabrication materials, withsegregated areas for FRP, aluminium andsteel shipbuilding respectively.
The modern facility caters to theconstruction of an assortment of vessel types,from oceangoing tugs to mega-yachtsranging from 15 to 70 metres in length. Thecompany employs approximately 1,000certified and skilled workers, with seniortechnicians and management hailing fromthe United States, the United Kingdom,
Singapore and Hong Kong. Vessels areconstructed under survey to ABS, DNV, BV,LR, CCS, or other requirements whererequired and marketed worldwide.
HistoryCheoy Lee’s history stretches back to a
facility named Ah Chang and Companylocated at Po Tung Point in Shanghai. As wellas building new vessels, Ah Chang andCompany had contracts to maintain thelarge fleet of inspection launches operated bythe Shanghai Customs service. With steambeing the primary means of propulsion ofthe times, the yard also built boilers and engines.
Run by the same family ever since, theoperation moved to the then-British territoryof Hong Kong in 1936 at the outbreak of theSino-Japanese War. Initially established asChean Lee Company in Hong Kong, thecompany specialised in the installation ofmechanised propulsion systems on sailingcargo vessels to break through the Japaneseblockade. The Japanese, however, soonincreased the capabilities of their own fleet,to the point where new types of vessels wererequired. The fledgling Chean Lee Company,lacking the required facilities, wassubsequently forced to close down.
In 1940, one member of the family (thefather of all eight of the currently servingCheoy Lee management board), purchased aplot of land in Kowloon and establishedCheoy Lee. Following World War II, thedemand for coastal cargo vessels was high,and by the mid-1950s Cheoy Lee haddiversified into the production of teak sailingand motor yachts, mostly for export to theUnited States.
It was during the 1960s that Cheoy Leebecame one of the pioneers in thedevelopment, testing and use of FRP boatconstruction. Not long thereafter, woodconstruction was phased out. Constantly
Completed earlier this year, the Robert Allan-designed 32metre ASD tug 'GPC Tesoro' left Hong Kong in Januaryon a delivery voyage across the China Sea and the PacificOcean to a South American client
Cheoy Lee's Zhuhai shipyard was established in 1997 to take advantage of mainlandChina's local shipbuilding expertise and competitive labour market
June 2013 WORK BOAT WORLD16
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improving its products, Cheoy Lee was tobecome a forerunner in the marine use ofFRP/foam sandwich technology. In 1977,Cheoy Lee built the world's largest FRP yachtof the time, the 39.6 metre (130ft)motorsailer ‘Shango II’. By 1979, the first allfoam-cored production motor yacht came online, the 14 metre (48ft) Cheoy Lee Sport Yacht.
Cheoy Lee’s aptitude in compositeconstruction benefits both the commercialand yacht wings of the company. Thoughthe shipyard has built yachts in steel andaluminium in the past, Cheoy Lee’sextensive experience in these materials isapplied primarily to craft built for thecommercial sector.
To date, Cheoy Lee has constructed over5,000 vessels. Initially focusing oncommercial craft, output in the 1960sthrough to the 1980s was heavily skewedtowards yachts. Over the past two decades,however, the pendulum has swung back inthe way of commercial vessels.
Cheoy Lee allows market forces to dictatewhere production is focused within eachsector. The company is equipped to cater toall eventualities, and strives to be a leadingproducer of both commercial and pleasure vessels.
Professionalism and qualityAt the heart of Cheoy Lee are eight
brothers with four generations ofshipbuilding heritage running through theirveins. Between them, this management teamof university and MBA graduates hasexpertise in all the critical areas needed foroperating a large shipbuilding concern suchas Cheoy Lee – from naval architecture toaccounting and business administration.
This family setup allows for tight controlover the company’s diverse product lineacross three global locations, enabling anexcellent spread over a broad sector of the
industry. With such a management structurecomes great stability, and the prospect thatCheoy Lee will remain as a significant part ofthe industry for many years to come is steadfast.
In moving across the border to China inthe late 1990s from the long-standing HongKong operation, the close proximity of thenew site allowed Cheoy Lee to retain theircore of long-serving management andforeman-level staff while also providing abackbone for the proper training of a newand local Chinese workforce.
The remainder of the company’s roster is drawn from all regions of China’s already-strong shipbuilding industry. Throughthe Hin Lee operation in Zhuhai, Cheoy Leeadditionally operates a three-month trainingprogramme followed by an apprenticeshipscheme to ensure the highest levels of qualityand productivity from their staff.
The shipyard has ISO 9001:2008certification and facilities are approved by allmajor classification societies. The yard buildstop quality commercial vessels through tomega yachts for all regions of the world.
Recent deliveries2012 started with the completion of
Cheoy Lee’s second major tug contract withthe Panama Canal Authority. The final unitof thirteen 4,474kW ASD Z-Tech 6500 tugswas handed over in Panama in February,having followed the same trans-Pacificdelivery route taken by her twenty-onepredecessors. For each of these vessels, GE 12V228 engines drive two Schottelazimuth rudder propellers, a configurationthat provides the Robert Allan-designedvessels with a free running speed of 12.5knots and a bollard pull of 65 tonnes.
2012 also saw the delivery of the first two RAmparts 3200CL tugs to Colombia of a three-tug order, while Z-Tech 7000 tugswere recently delivered to clients in
Singapore and Saudi Arabia. Anotherimpressive Robert Allan design, the Z-Tech7000 vessel achieves a 70 tonne bollard pullwith only 4,000kW from a pair of Caterpillar3516C engines.
Beyond the harbour tug sector, Cheoy Leerecently delivered four supply vessels toglobal clients. Two were 54 metre units for aSaudi Arabian customer, while the remainingtwo were 58 metre vessels, with anchorhandling capabilities, for clients in Singaporeand Argentina.
From the FRP division, 2012 saw amultitude of vessel orders fulfilled. Theseorders included the last of four 13.7 metreHong Kong pilot vessels, four 15 metre pilotvessels for PSA Marine in Singapore, and two32 metre catamaran ferries for Hong Kongand Kowloon Ferries.
With the exception of several yachtdeliveries, 2012’s deliveries were concludedwith two custom 35 metre barge projects forCheoy Lee’s long-standing client HUD. Thebarges are designed and built specifically topair up with a 21 metre multi-purpose tugthat Cheoy Lee will complete shortly.
2013 opened with two 30 metre steelhull/FRP launches for Hong Kong ElectricCompany, followed by the third and finalvessel in the Colombian RAmparts 3200CLtug contract. At the same time, anotherRAmparts 3200CL was delivered to SAAM inChile. For all these vessels, Caterpillar 3516Cengines provided power to Schottel SRP1515FP drive units for a bollard pull of 70 tonnes.
Most recently, Cheoy Lee is delivering a23 metre aluminium patrol vessel for Brunei,as well as the first of four 50 metre anchorhandling tugs for Singapore, a vesselreviewed in this issue of Work Boat World.
For further information contact:Cheoy Lee Shipyards, Hong Kong.Email: [email protected]: www.cheoylee.com
WORK BOAT WORLD June 2013 17
FOUR GENERATIONS OF HONG KONG SHIPBUILDING HERITAGEThe Hong Kong-based 3,700kW harbour tug 'Taikoo’
Cheoy Lee'sshipbuilding prowessincludes decades ofexpertise in diversematerials such as FRP,aluminium and steel
Roll-out of a harbour tugfrom Cheoy Lee's
shipbuilding facility
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