China Targets Shipbuilding Sales of $189 Billion By 2015

Wednesday, March 21, 2012

SHANGHAI -- China aims to increase annual sales by domestic shipbuilders to $189.7 billion by 2015, as it works toward its goal of becoming the world's leading shipbuilding country, the Ministry of Industry and Information Technology said. 

China also plans to raise the value of annual shipbuilding exports to more than $80 billion by 2015, the ministry said, in a five-year plan for the shipbuilding industry.

The plan provides new details regarding China's push for significant growth in domestic shipbuilding at a time when the industry already faces overcapacity. A recent report by the China Association of the National Shipbuilding Industry showed that total new orders from more than 1,500 shipbuilders in China fell more than 50 percent last year. Shipbuilders have said demand for commercial ships will remain poor this year amid continued global economic weakness.

A central part of the ministry's plan for developing the sector is concentration of capacity. The plan calls for China to push forward with "structural improvements" to the industry, with the goal of 70 percent of the country's shipbuilding capacity concentrated among its 10 largest shipbuilders by 2015. The plan also says China should aim to claim at least five of the world's 10 largest shipbuilding companies by 2015.

"That's going to take some consolidation," said Matthew Flynn, managing director of Worldyards, a research firm. "At the moment, the top 20 percent of shipbuilders (in China) account for 63 percent of national capacity."

But Flynn said the sales targets, while aggressive, appeared achievable.

"They'll have to work hard to take orders in, considering the state of the shipping market. (But) this is doable, assuming that the high yen keeps the Japanese somehow out of the market," Flynn said.

Worldyards estimates China's existing order book for offshore and commercial merchant shipbuilding at $109 billion, compared with $140 billion for South Korea and $41 billion for Japan.

The growth target would also require Chinese shipyards to continuously work to take market share from international shipyards, particularly in Korea, Flynn said. While Chinese yards will need to improve the quality and efficiency of new ships to appeal to a "buyer's market," they also stand to benefit from any appreciation of the Korean won, he said. (Google Alerts)



 

Maritime Reporter March 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

OSC Plans Fleet Expansion through 2018

State-owned Oman Shipping Company SAOC (OSC) is projecting to expand its current fleet of 43 ships to 50 by 2018, the Oman Daily Observer reported. According to the report,

Zamakona to Build Tug for HPC

Haifa Port contracts 70 t Voith Tug with Zamakona Yards Haifa Port Company (HPC) has awarded the international tender for a new build Voith Schneider tug to Zamakona Yards.

New Joint Venture Targets Nuclear Industry

International maritime logistics expert Cory Logistics, part of Braemar Shipping Services plc, has formed a joint venture with universal supply chain specialist

News

Australia's GHG fall by 0.8 %

Australia's greenhouse gas emissions fell 0.8 percent in 2013, according to government data, driven by lower electricity demand and a bigger share of renewables in the energy mix.

China crude oil output up

China's refinery crude throughput in March rose 2.6 percent from a year earlier to 41.92 million tonnes, or 9.87 million barrels per day (bpd), data from the National

Rescue underway to assist sinking S. Korean ferry

A passenger ferry carrying about 470 people was listing badly off South Korea's southwest coast and had sent a distress signal, a Korean coast guard official said on Wednesday,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Naval Architecture Navigation Pod Propulsion Port Authority Salvage Ship Electronics Ship Simulators
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1123 sec (9 req/sec)