Cosco Shipping Heavy Industry (CSHI), the newly restructured shipbuilding entity of China Cosco Shipping Corporation, plans to close down three offshore shipyards in an effort to cut overcapacity.
According to the plan, CSHI will close its shipyards in Nantong, Zhoushan and Dongguan by 2020 and the group will consolidate offshore equipment construction operations at its Dalian and Qidong yards.
Liang Yanfeng, general manager of CSHI, said the move will effectively optimise resources, cut overcapacity and prevent price competition between its subsidiaries.
CSHI was established in October 2016 after Cosco and China Shipping merged 13 affiliated yards together.
CSHI announced a plan last year to cut its total shipbuilding capacity from 12.05m dwt to 10.6m dwt by the end of 2017 and further reduce capacity to 9.6m dwt by the end of 2020.