National Shipbuilding Industry News

The Dutch government on Friday said it had picked French defense company Naval Group to build four new submarines in coming decades in a long-brewing deal seen by politicians as a potential lifeline for the national shipbuilding industry.The government said the first two submarines would be operational within the next 10 years. It did not specify the exact value of the multi-billion euro contract.The submarines will be of a size to both operate in shallow waters and take part in missions far from base.The agreement still has to be approved by the Dutch parliament…

The major shipyards in China are operating at full capacity, resulting in potential order backlogs, reports China Daily.The value of China's ship exports rose by over 21% year-on-year to $8.86 billion in the January-May period, according to China Association of the National Shipbuilding Industry data. Orders rose by 50% over that time, giving China a 67% world share.Orders have included container ships, bulk carriers, LNG carriers, vehicle carriers and offshore vessels. The growth in orders has been partially attributed to shipowners looking to meet decarbonization goals.CSSC subsidiary…

Chinese Association of the National Shipbuilding Industry (Cansi) said that China maintained its top position in the global shipbuilding industry in 2018.Chinese companies built 43.2 percent of the new ships in the world last year, up from 41.9 percent a year ago, cementing the country's leading role in the sector, Xinhua reported quoting Cansi.It said that China received 43.9 percent of global new orders last year and held 42.8 percent of the current orders.From the 1950s to the beginning of the 21st century, the three indices were topped by Japan or the Republic of Korea (ROK), while In 2010, China exceeded the ROK and ranked the first in the world.Given a lackluster global economy…

China would like to compete with South Korea in the field of building liquefied natural gas (LNG) carriers building.South Korea has won 86 percent of the world's total orders or 52 orders for LNG carriers so far in 2018, according to Clarkson Research. The remaining nine orders were shared by companies from China, Singapore and Japan.Though China leads offshore engineering products and mega container vessel shipbuilding sectors, the country is a laggard in LNG shipbuilding.A recent report in the country's official media China Daily quoted Tan Naifen, deputy secretary-general of the China Association of the National Shipbuilding Industry (CANSI) as saing: "The global demand for LNG carriers will continue to surge in the long term…

The world’s largest shipbuilding nation China is facing some tough years ahead as new-vessel orders weaken and order backlogs decline, Caixin reported quoting China Association of the National Shipbuilding Industry (CANSI). According to the industry association, in the first half of 2017, new orders received by Chinese shipbuilders plunged by 29 percent year-on-year in terms of total estimated freight volume for the new ships, the report said. The new orders are totaling 11.51 million deadweight tons. Deadweight tonnage is how much a ship can safely carry, not the weight of the ship itself. The order backlog held by Chinese shipyards also dropped 30.5% from a year earlier to 82.84 million deadweight tons, the association said.

The newbuilding orders for China’s shipbuilding yards plunged by  25.4% during the first three months of 2017 compared to the same period a year earlier, according to data provided by the China Association of the National Shipbuilding Industry (Cansi). For the first quarter ended 31 Mrach, Chinese yards recorded 5.54m dwt in new vessel tonnage. However, in completed newbuild tonnage, they produced a total of 15.67m dwt of vessel capacity during the first three months, representing a jump of 87.7% compared to the previous corresponding period.

China aims to capture up to 40 percent of the global high-end marine equipment market over the years through 2020 while reforming and supporting its money-losing shipbuilding industry, the government said on Thursday. The pledges were laid out in a statement published by six ministries on the website of the Ministry of Industry and Information Technology. The statement broadly outlined their plans for Chinese shipbuilding over 2016-2020. The global shipping industry is suffering from a severe downturn that has sapped demand for new vessels. Many shipyards in China, which build mainly mid-to-low-end vessels such as dry bulk carriers, have shut down as a result.

The sixth diesel-electric submarine for Russia's Black Sea fleet was launched Tuesday at a shipyard in St. Petersburg, says Russian News Agency TASS . The Varshavyanka-class sub, named Kolpino, is an advanced version of what NATO designates as a Kilo-class submarine. The launch ceremony has been attended by Deputy Commander-in-Chief of the Russian Navy Aleksandr Fedotenkov, Saint-Petersburg Governor Georgy Poltavchenko and  USC President Aleksei Rakhmanov. "It’s a big day for the Navy, for St. Petersburg, for the country. The submarine launch is a national event. Admiralty Shipyard is indeed the flagship of the national shipbuilding industry. Your ships are delivered on time and with proper quality," said Deputy Commander of the Russian Navy Vice Admiral Alexander Fedotenkov.

Shipbuilders in China will continue facing rough weather. According to a report in Bloomberg, new orders received by Chinese shipbuilders fell by nearly half last year from 2014, suggesting more consolidation is in order as the country’s appetite for raw materials wanes and shipping rates languish at multiyear lows. Shipyards in China received new orders amounting to 31.3 million deadweight tons last year, a world-leading 34 percent share of the global market. Backlog orders fell 12 percent to 123 million deadweight tons, or 36 percent of global market share. The shipbuilding will lag behind their foreign rivals as cumbersome financing conditions and prolonged excess capacity continue to crimp industry profits and push smaller shipyards out, experts said.

Drop in commodity prices has slashed global demand for bulk carriers, pushing shipyards out of business, says Chinese news agency Caixin. Huai Jinpeng, a vice minister from the Ministry of Industry and Information Technology, which oversees the sector said that the industry is plagued by excess capacity even after many large private ship makers have gone bankrupt or stopped production. China alone will build ships with a total carrying capacity of 80 million tons next year, equal to the forecasted increase in global demand, estimates from the ministry showed. In the first 10 months of 2015, Chinese ship builders have received orders for new vessels totaling 20.3 million tons…

New ship orders at Chinese yards have fallen 68.3 percent to the end of August as tough conditions prevailed in the global shipping market, Global Times reported quoting data from the China Association of the National Shipbuilding Industry (CANSI). Accoring to experts said the discouraging figure will exacerbate the problems of the country’s struggling shipyards. CANSI said that due to the slack market, order backlogs and prices for new ships also fell. China’s shipbuilders completed 14.6 percent more ships by tonnage than a year earlier during the eight months, reducing the order backlog, which was down 12.1 percent at the end of August, CANSI data showed.

Shenzhen-listed shipbuilder Sainty Marine withheld news of 29 lost orders from said exchange, Caixin reported, citing data from industry research firms and information from a shipbuilding executive. The firm told the stock market that buyers had canceled four orders in May, but the remainder - worth RMB6 billion (US$966.3 million) - remained undisclosed. Data from industry research firms and information provided by a shipbuilding executive reveal that Sainty Marine Corp. Ltd., based in the eastern province of Jiangsu, lost 33 orders for ships that it had received from 2013 to March this year. Regulators had warned the company in April that it could be delisted at the end of the year if it did not address its financial problems.

Ship scrapping subsidy program originally due to run to end-2015; show of government support amid continuing industry downturn. China on Tuesday extended by two years a subsidy programme that encourages shipping companies to scrap old vessels in a bid to support an industry struggling to emerge from a global downturn. The scheme, which began in 2013 and was due to end this year, gives shipping lines grants of 1,500 yuan ($241.67) per gross ton to replace old vessels with newer, more environmentally friendly models. These subsidies helped state-backed shippers including China COSCO  and China Shipping Development to post a higher 2014 profit despite the slump in the global industry. China Cosco said it would have posted a loss had it not been for the subsidies.

88 medium-size and large shipbuilding enterprises in China realized an aggregate gross industrial output value of RMB 163.0 billion ($26.3 billion) during the January-May period this year, up 5.5 percent year on year, says China Association of the National Shipbuilding Industry (CANSI). The aggregate shipbuilding output in China amounted to 15.48 million deadweight tons (dwt), up 18.9 percent year on year. In the given period, the shipbuilding enterprises recorded an aggregate export value of RMB 68.0 billion ($10.97 billion), up 3.7 percent year on year. In the January-May period, the shipbuilding enterprises in question saw an aggregate operating revenue of RMB 102.0 billion ($16.5 billion)…

The China's four state-run shipping-related companies  are reportedly in the initial phases of combining units in order to beef up the national shipbuilding industry, says local media. The chances of mergers between China Ocean Shipping, China Shipping Container Lines, Sino Trans & CSC Holdings and China Merchants Group  has improved as they now suffer in a lackluster business climate, the Chinese-language Securities Daily reports. COSCO Shipping and China Shipping Container Line (CSCL) , which control 80 per cent of the Asian country’s domestic shipping market between them, have already agreed to operate together on China’s domestic routes. If the two carriers, both of which are owned by the state, do merge, it would create a box carrier with 1.3 million TEUs of capacity.

Chinese energy giant CNOOC Group is studying the possibility of building a multibillion-dollar floating liquefied natural gas (FLNG) vessel, as-yet untried technology that would likely be used to produce gas from the deep waters of the South China Sea. While the state-run company has made no public announcement, a pre-feasibility study was well under way, CNOOC and other industry officials said. CNOOC was already talking to global engineering firms about possible joint design of the vessel, two industry officials added.

China will continue to lag behind its foreign competitors as prolonged excess shipbuilding capacity continues to negatively impact industry profits and drive smaller shipyards out of business: a situation unlikely to improve in 2014, says Xinhua. As the world's largest low-end ship-producing country, China has 1,600 enterprises related to ship construction, half of which are large shipyards. Citing Zhang Guangqin, president of the China Association of the National Shipbuilding Industry, Xinhua says that heedless expansion of capacity and product lines have severely hurt the industry's health.

Largest ever Marintec China 2013 hits New Records over 1,700 exhibiting companies and attracted 13% more trade visitors Hong Kong – December 23, 2013—Marintec China 2013, organized by UBM Asia and the Shanghai Society of Naval Architects and Ocean Engineers, was a tremendous success over the four days of the show from December 3-6, 2013. With the blowing of a whistle and pushing of the actuating lever, Marintec China 2013 officially began. The four-day exhibition and conference was unveiled and officiated by senior officials from the industry…

Hyundai Heavy Industries Co., the world’s biggest shipbuilder, plans to raise prices as demand for fuel-efficient vessels increases, reports the Japan News, citing Bloomberg, Singapore. Hyundai Heavy’s optimism helped drive up shares of South Korean shipbuilders Monday and contrasts with gloom over Chinese shipbuilders. A third of China’s yards may shut down in about five years as they struggle to win orders, an unamed industry group informed Japan Times. About 483 shipyards in China won $10.5 billion worth of orders in the first six months of this year, while 94 builders in South Korea got $18.5 billion, says the Japan Times citing Clarkson PLC.

The first half of 2013 has seen a drop in Chinese maritime industrial production. According to figures released by the China Association of the National Shipbuilding Industry (CANSI), the total industrial output of the 80 main ship enterprises in China (whose operations include shipbuilding, ship repairs and production of ship parts) amounted to $27.8 billion, down 16.6% year on year. In the first half of the year the total industrial output of the shipbuilding companies of the 80 main ship enterprises in China amounted to $14.3 billion, down 31.2% year on year. The overall operating revenue and gross profit of the 80 ship enterprises was reported to total $19.5 billion and $580 billion, down 18.5% and 53.6% respectively, both year on year.

The combined profits of 80 major ship builders monitored by the Chinese Association of the National Shipbuilding Industry nose-dived by 53.6 percent in the first half of the year to 3.58 billion yuan ($584.1 million), while business revenues plunged 18.5 percent to 120.3 billion yuan ($19.66 billion). In response the State Council has issued a support plan aimed at keeping the shipbuilding sector afloat, reports the 'China Daily'. The Hengfu Shipyard, headquartered in east China's Zhejiang province, used to be an industrial heavyweight with an annual production capacity of 1 million deadweight tons of vessels. However, the ship producer declared bankruptcy in 2011 due to a lack of orders and mounting debts.

Chinese shipbuilders have been sailing toward bankruptcy in recent years, with China trying to consolidate the industry and bail it out from the woe of overcapacity. With delays in deliveries, order cancellations and price decreases for newly-built vessels, shipbuilding firms have been in a slump since late 2008, when the global financial system was in free fall, reports a recent Xihua Insight article. Statistics from China Association of National Shipbuilding Industry showed in the first half of 2013…

Regarded by many as the only gateway to the Asian maritime market, Marintec China 2013 has opened with due ceremony in Shanghai. With a significant increase in the floor area from 2011, this year's Marintec China covers more than 70,000 square metres. Taking up six exhibition halls, (Hall N1, N2, N3, W3, W4, W5) of the Shanghai New International Expo Centre (SNIEC), this year looks like being another record breaker. Sixteen national / regional pavilions from Austria, mainland China…