China Shipbuilding Industry Corporation (CSIC), one of China’s two state run shipbuilding conglomerates, have started the internal integration of its subsidiary yards in an effort to optimize operations.
The move is a response to the central government’s latest “supply end reform” policy in several major industries to deal with overcapacity.
When contacted by Splash, an official at CSIC has confirmed that the group has started preliminary works to merge two major subsidiary yards in Qingdao, Qingdao Wuchuan Heavy Industry and Qingdao Beihai Shipbuilding Industry.
Upon completion of the restructuring, Qingdao Beihai Shipbuilding Industry will become a subsidiary of Qingdao Wuchuan Heavy Industry.
According to the official, CSIC also plans to merge Bohai Shipbuilding Industry with Shanhaiguan Shipbuilding Industry, while Dalian Shipbuilding Industry will merge with Tianjin Xingang Shipbuilding Industry.
New order volumes at Chinese shipyards increased by 23.9% to 7.42m dwt in the first quarter of 2016.