China’s two state-run shipbuilding conglomerates – China State Shipbuilding Corporation (CSSC) and China Shipbuilding Industry Corporation (CSIC)- have officially confirmed their intentions for a long expected merger.
Eight listed units of CSSC and CSIC all have announced that the two groups are currently planning a strategic restructuring, but the details of the merger have yet to be confirmed.
The State-owned Assets Supervision and Administration Commission of the State Council (SASAC) has been working on possible consolidation plans for the two shipbuilders for many months.
The top management of the two groups met in March this year to discuss a possible merger after Beijing reaffirmed its plan to push forward further consolidation in many sectors, including shipbuilding, during the National People’s Congress Conference.
When contacted by Splash, an official at CSIC said the two groups had already set up a special team to work on the merger in May.
Earlier this year, CSSC started a series of internal restructurings to pave way for the merger, while CSIC has also been giving up on its non-profitable assets.
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.
The merger is expected to create one of the largest shipbuilding groups in the world, competing with the South Korean shipbuilding conglomerate about to be created by the merger of HHI and DSME.
VesselsValue data shows CSSC currently has an orderbook of 278 newbuildings while CSIC has 141 newbuildings on its orderbook.