Beijing: The clear out of weaker shipyards in China will to continue and there is little chance of a pick up for the sector in the coming two to three years, says the secretary general of the China Association of The National Shipbuilding Industry (CANSI). Wang Jinlian acknowledges the “inappropriate structure of the industry” in an exclusive interview with Maritime CEO as well as the slow development of vital supporting industries.
Wang admits that Chinese yards’ “creative ability is weak”, and the nation has failed to catch enough orders for high-end products.
“The elimination of small and low-tech yards is inevitable,” says the shipbuilding supremo.
“The blind expansion of capacity and product types is not wise,” he says, specifically admonishing smaller yards for trying to aim for the high-end market.
“With the development of shipbuilding industry, the high-end market will be the key for shipbuilders’ competition,” Wang says, adding, “China still has something to learn from Japan and Korea on this sector.”
Down, but by no means out is very much the message from CANSI headquarters where Wang says ambitious government goals are attainable.
In the coming three years, Chinese shipbuilders should aim to secure 25% of the global market share for high-tech ships and one-fifth for the global offshore engineering market.
The other big thing to watch for among Chinese builders in the coming three years is significant expansion overseas, Wang says, with acqusitions of yards and design firms high up on the agenda.
Wang reckons newbuild prices have finally bottomed out but with the shipping industry showing “no sign of recovery” it will take another two to three years before shipbuilders are back in healthy territory. [20/08/13]
