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 Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter February 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

Nordana Sea Delivered to Symphony Shipping

After successful sea trials, M.V. Nordana Sea was delivered to Symphony Shipping on February 11, 2016. Constructed by builder Ferus-Smit in the Netherlands (yard number 419),

James Troop Supplies Engines for 3 Naval Vessels

Liverpool City Region (UK) based ship engine specialist James Troop & Co has won an order to supply Volvo Penta diesel engines for three European naval vessels being built on Merseyside.

OSV Delivered to MC2 in Dubai

Marine Core & Charter LLC (MC2) headquartered in Dubai has taken delivery of the new build PETRA-1, the first of two, 45-meter Fast Offshore Support Vessels in

News

Brazil's CEEE to sell stakes in Wind Farms, Dams

Brazil's Companhia Estadual de Energia El├ętrica (CEEE), a power utility controlled by the state of Rio Grande do Sul, will sell assets including stakes in wind farms,

N.E. Fishermen Warned of Extreme Cold, Wind Chills

The Coast Guard is urging the Massachusetts and Rhode Island fishing fleet to take caution heading into the weekend when life threatening temperatures and wind chills are forecasted.

Hapag-Lloyd Enhances Conosur Service

Hapag-Lloyd has informed about its service enhancements on the Conosur Service (South America West Coast to South America East Coast). This is being upgraded by

 
 
Maritime Security Maritime Standards Naval Architecture Navigation Salvage Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar
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: 0.0959 sec (10 req/sec)