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.