Chinese shipyard mega merger being fast-tracked

Chinese shipyard mega merger being fast-tracked

China’s two major state-run shipbuilding majors – CSSC and CSIC – are accelerating preparation for a potential merger, and a detailed merger plan is expected to be finalised this year.

Chinese financial media, The Economic Observer, quoted a source close to the matter saying that the two groups are still working to adjust the merger plan and the State-owned Assets Supervision and Administration Commission (SASAC) will soon present a detailed plan to a new central reform commission established last year by the Chinese president Xi Jinping. If the process goes successfully, the entire planning for the merger could be done before the end of this year.

Earlier this month, merger speculation between CSSC and CSIC heated up further with leaders from both groups meeting at the headquarters of CSSC.

Splash reported last month that the central government had already been working on the merger but a concrete plan has yet to be brought on the table. The issue has intensified in the wake of Korean rivals, Hyundai Heavy and DSME, getting a green light to merge in the past few weeks.

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.

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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