China Cosco Shipping Corporation (Coscocs), the shipping conglomerate formed by the merger of Cosco and China Shipping, has started the restructuring of its shipbuilding assets.
Coscocs will use its subsidiary Cosco Shipbuilding Industry as a restructuring platform and transfer all shipbuilding and ship repair assets including Cosco Shipyards, China Shipping Industry, NACKS and DACKS into the platform.
According to the restructuring plan, the group is also going to cut its total shipbuilding capacity from 12.05m dwt to 10.60m dwt by the end of 2017 and further reduce capacity to 9.6m dwt by the end of 2020. China Shipping Industry’s Jiangsu yard will also be shut down.
In the meantime, Coscocs will move Cosco Shanghai Shipyard’s module construction operations to China Shipping Industry’s Shanghai Changxing yard, while it will close some ship repair docks with lower capacity at its Shanghai yards.
In the first half of 2016, China has completed a shipbuilding volume of 17.15m dwt, down 7.4% year-on-year, while new order volumes increased by 44.7% year-on-year to 16.2m dwt.