China Shipbuilding changes course to high-end specialist vessels

China Shipbuilding Industry Corp, one of the country's two major shipbuilding conglomerates, plans to integrate six of its shipyards into three. It will focus more on building high-end vessels as the industry remains in choppy waters amid waning global demand.


Officials at the State-owned company said the plan is to simplify its management structure and make itself more proficient in building ships such as very-large crude and ore carriers, bulk carriers, and cement and cattle vessels, which will allow it to diversify its options and broaden its customer base.


With a workforce of about 150,000 employees, CSIC operates more than 50 industrial subsidiaries and 30 research institutes, and has exported various types of vessels to more than 70 countries.


China State Shipbuilding Corp, the country's other State shipbuilding concern, has more than 50 subsidiaries and research institutes.


CSIC's three major subsidiaries are Dalian Shipbuilding Industry Co, Bohai Shipbuilding Heavy Industry Co and Qingdao Wuchuan Heavy Industry Co.


Three major shipyards are involved in the restructuring, Shanhaiguan shipbuilding Industry Co, Tianjin Xingang Shipbuilding Heavy Industry Co and Qingdao Beihai Shipbuilding Heavy Industry Co, and each will be allocated specific types of building contract.


Sun Bo, CSIC's president, said he expected the global shipbuilding market competition to remain fierce long-term, as the industry suffers from falling demand and overcapacity remains high.


More than 30 major shipyards filed for bankruptcy in the past two years, according to the Beijing-based China Association of the National Shipbuilding Industry.


"Many shipyards in China have excess capacity in conventional shipbuilding, but not in building complex and high value-added ships," said Sun.


The article transsshipment from China Daily