China's shipbuilding consolidation seeing positive results

Posted:2/18/2014 12:51:44 AM

 The ongoing consolidation of China's shipbuilding industry is seeing positive results as a good number of bottom-rung yards have exited the business, according to a senior government official.

in August last year, China's State Council unveiled a three-year plan to revive the country's shipbuilding industry, which is struggling with overcapacity. The 2013-2015 plan aims to bring about the advancement of technology in shipyards, an expansion into offshore shipbuilding and equipment construction, a strict control on adding new yard capacity, a quicker phasing out of old vessels, the enhancement of corporate management and services, and capturing of a larger global market share.

Li pointed out that the above-mentioned national policy is also aimed at encouraging the greenfield yards to shut down and those small to medium sized enterprises to leave the business, so as to streamline the sector and raise the industry's overall competitiveness.

Meanwhile, China's shipbuilding sector has reported more positive figures in 2013, with newly received tonnage amounting to 69.84m dwt, soaring 242% year-on-year. Chinese yards accounted for 47.9% of the world's total newbuilding tonnage at 145.78m dwt in 2013, according to figures from the ministry of industry and information technology.

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