Twenty years after they were split apart, China’s main two state-run shipbuilders were remerged today. China Shipbuilding Group was unveiled today bringing together all the yards and assets of China State Shipbuilding Co (CSSC) and China Shipbuilding Industry Co (CSIC), the merged entity likely to make a considerable splash at next week’s Marintec China in Shanghai, the largest shipping exhibition in Asia.
Ahead of Hyundai Heavy Industries sealing its takeover of Daewoo Shipbuilding & Marine Engineering in South Korea, China Shipbuilding Group can lay claim to being the world’s largest shipbuilder with $112bn of assets and 310,000 workers.
The mega yard mergers seen in China and South Korea could see more “belligerent pricing” coming from shipbuilders next year, delegates attending last week’s Maritime CEO Forum in Hong Kong were told.
CSIC and CSSC were one conglomerate until 1999 when they were spilt in two with the Yangtze river serving as a geographic marker, with CSIC in charge of northern yards and CSSC taking yards south of the river.