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Mobile WebSiteAccording to the US "Marine Supervisor" magazine website reported on October 25, the newly established state-owned enterprise will be named China Shipbuilding Group Co., Ltd.
The State-owned Assets Supervision and Administration Commission issued a notice stating that China Shipbuilding Industry Corporation Limited and China Shipbuilding Industry Corporation Co., Ltd. implemented a joint restructuring with the approval of the State Council.
The new company formed after the merger will occupy half of the Chinese shipowner's new ship orders and repair contracts, while occupying most of China's naval shipbuilding activities.
According to a report on the website of Japan’s Nikkei Asian Review on October 26, the companies jointly built by CSSC and CSIC are comparable to Hyundai Heavy Industries, which is itself in the process of merging with Daewoo Shipbuilding and Shipping Engineering.
The report said that the timetable for the merger of CSSC and CSIC has not been announced.
The report said that the merger will also enhance China's ability to build warships, both of which build aircraft carriers and other military vessels.
In addition, according to "Nihon Keizai Shimbun" reported on October 26, after the reorganization of CSSC and CSIC, its shipbuilding volume will occupy about 20% of the global market, approaching Hyundai Heavy Industries. Hyundai Heavy Industries is promoting integration with Daewoo Shipbuilding and Shipping Engineering to strengthen its position as the world's number one shipbuilding company. In the field of shipbuilding, global overcapacity has emerged, and Japanese companies, including Japanese companies, seem to need integration.
The international shipbuilding industry's authoritative consultancy, Clarkson Research, said that from the completion of shipbuilding in 2018, the CSSC industry was 9.25 million DWT, ranking second in the world, accounting for 11.5% of the global market; CSIC is 602. Ten thousand tons of ton, ranking third in the world, accounting for 7.5% of the global market. Both companies are Chinese state-owned enterprises, and their products range from bulk ships, container ships, large passenger ships to aircraft carriers and other military vessels.
According to the report, due to the large-scale restructuring of Chinese and Korean companies, the monopoly of the shipbuilding industry has become more and more obvious. For high-value-added resource and energy vessels that Japanese big-name shipbuilding companies are good at, Chinese and Korean shipbuilding companies have also launched price offensives. In the case of the cessation of shipbuilding demand, Japanese shipbuilding companies may face an increasingly severe operating environment.
