China State Shipbuilding Corporation (CSSC) is now facing operational difficulties at some of its affiliate yards amid the slump in the shipbuilding market.
CSSC said in its latest half year report that it is facing many challenges including difficulties obtaining new orders, ship delivery risks, and financial pressures. The company said its Waigaoqiao yard and Chengxi yard are both facing operational risks and uncertainties due to a lack of work.
In order to deal with the crisis CSSC says it plans to strengthen its ship repair and conversion business at the two yards and it is also making efforts to get more orders from the navy and public service departments.
Chengxi Shipyard mainly builds bulk carriers and provide ship repair business, while Waiogaoqiao Shipbuilding has a versatile portfolio including bulkers, boxships, tankers and offshore platforms.
CSSC reported a net profit of RMB17.08m ($2.56m) in the first half of 2016, down 90.05% year-on-year. Revenue in the same period also dropped by 17.2% year-on-year to RMB11.8bn.