China signaled that it will cut its vast shipyard army to get industrial growth back on a healthy track this year, as its earning ability falters amid cheap vessel prices, blind expansion and speculation in the shipbuilding sector, according to Xinhua.
China will drastically curb the number of shipyards, docks, berths and maintenance facilities it opens, reports Xinhua, citing Li Dong, deputy director-general at the department of equipment industry at the Ministry of Industry and Information Technology. Blind investment activities in the shipbuilding sector must be restrained, especially in the regions of the Bohai Bay, Pearl River Delta and Yangtze River Delta.
According to the minister, capable shipyards will be supplied with technical and financial assistance to develop high-end ships and offshore engineering products to catch up with rivals such as South Korea and Singapore. Unqualified shipyards are warned they should not think about producing offshore engineering products such as oil rigs and offshore pipe-laying vessels for foreign ship owners.
Source: Xinhua/China Daily