China grew into the world’s leading shipbuilder over the last decade as hundreds of private yards opened to compete with state-run companies. Now, the government is poised to regain control as the industry heads for consolidation, reports Bloomberg.
The number of shipyards in China has swollen to 1,647, contributing to a global capacity glut. To stabilize the industry, one third to a half of the yards will probably have to disappear through acquisitions and closings, according Bloomberg, citing industry executives and analysts.
State-run companies are at an advantage because they have easier access to credit to pay workers, buy raw materials and provide financing for clients.