Shanghai: Following the recent state approvals of mergers between two major train makers CNR Corporation and CSR Corporation, and two major power groups China Power Investment Corporation and State Nuclear Power Technology Corporation, it has been widely reported by Chinese local media that two shipbuilding giants China Shipbuilding Industry Corporation (CSIC) and China State Shipbuilding Corporation (CSSC) are also discussing a potential merger.
CSIC and CSSC were spun off from the same group company by the central government in 1999. The business regions of the two companies are divided by the Yangtze River, CSIC controls state run shipyards north of the river including Dalian Shipbuilding Industry, Qingdao Beihai Shipbuilding Industry and Shanhaiguan Shipbuilding Industry, while CSSC controls the state run shipyards south of the river including Chengxi Shipyard, Waigaoqiao Shipbuilding and Jiangnan Shipyard.
However, the merger of the two shipbuilding giants remains unconfirmed. Liu Zhengguo, spokesperson for CSIC said that he was not aware of the merger talk and couldn’t make any comment. A spokesperson of CSSC also wasn’t able to provide any information.
Currently CSIC and CSSC each control three listed companies. CSSC controls CSIC Limited, Fengfan Co and Lepu Medical, while CSSC controls CSSC Limited, Guangzhou Shipyard International and CSSC Steel Structure.