Spain's state holding company Sepi said
it had created the world's 10th largest shipbuilder with annual sales of around $1.25 billion. The group, which formally begins in October, will be formed from the merger of Spain
's military shipbuilder Bazan with the civil yards including Astano, Cadiz and Manises.
Its order book will be worth 638 billion pesetas, Sepi said in a statement.
The merger is part of Sepi's plan to cut losses in the state-controlled industry and improve operating results by 20 billion pesetas, with the help of 100 billion pesetas of investment between now and 2005.
This should make the new group profitable and competitive in world markets, Sepi said.
Spain has tried to shake up its civilian shipbuilding interests four times in the last 15 years. The last three plans have resulted in 12,000 job losses and accumulated losses of 587 billion pesetas, Sepi said.