Growth Forecasted for the China Shipbuilding & Repairing Industry

According to BusinessWire.com, China's shipbuilding industry kept a fast growth in the first three quarters of 2007, and a variety of indicators refreshed the record. The accomplished output of shipbuilding industry amounted to 12.03 million DWT, a rise of 44 percent over the same period last year. Of all, the exported shipping hit 9.77 million DWT, taking 81 percent of accomplished shipbuilding output. In addition, new shipbuilding orders reached 64.34 million DWT, up 120 percent from a year earlier. Of all, the exported shipping arrived at 57.22 DWT, a share of 89 percent in the new shipbuilding orders. The handheld shipbuilding orders were up to 129.35 million DWT, up by 111 percent year-on-year. Of all, the exported shipping got to 113.07 million DWT, accounting for 87 percent of handheld shipbuilding orders. The accomplished shipbuilding output, new shipbuilding orders and handheld shipbuilding orders of China takes a global market share of 20.1 percent, 38.7 percent and 29.5 percent respectively. Since the cost-efficient labor force in China's shipbuilding industry and a 17 percent of tax rebates on exports, the shipbuilding in China is quite competitive in the international market. In recent years, China-made shipping has a price cut of five percent to eight percent compared to the shipping built in South Korea. According to the forecast, the shipbuilding accomplished in China in the year of 2007 will be above 16 million DWT. The rising trend of market demand will greatly promote the steady growth of China's shipbuilding and repairing industry in the future.