China plans new round of consolidation for maritime sector

China plans new round of consolidation for maritime sector

Beijing is planning a new round of consolidation for several industries to further push forward its strategy to optimise state-owned assets and industrial structure, China’s State-owned Assets Supervision and Administration Commission (SASAC) announced in a press conference for its 2019 working goals.

According to SASAC, the government will accelerate the consolidation in several sectors including power, iron and steel, shipping, shipbuilding, construction materials and tourism through mergers and acquisitions, asset swaps and strategic alliances.

The commission has encouraged companies in the sectors to consolidate with their upstream and downstream companies while streamlining their businesses internally.

Beijing’s ongoing efforts to consolidate the maritime sector have resulted in mergers involving the top four state-run shipping groups over the past couple of years. Cosco Group and China Shipping Group completed a merger in 2016, followed by a merger between China Merchants and Sinotrans & CSC in 2017.

Two major state-run power groups, China Shenhua Group and China Guodian Corporation, which each operates sizeable shipping and port assets, also completed a merger last year.

The announcement is sure to fuel ongoing rumours about a merger between the two state-run shipbuilding conglomerates, CSSC and CSIC.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.

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