Merger speculation between China’s two top state-run shipbuilders, China State Shipbuilding Corporation (CSSC) and China Shipbuilding Industry Corporation (CSIC), is heating up further with leaders from both groups meeting yesterday at the headquarters of CSSC.
According to releases by both CSSC and CSIC, the top executives from the two shipbuilding conglomerates held a group discussion on strengthening collaborations in many areas including smart manufacturing, naval products, cruiseships, clean energy and internationalisation to jointly serve the central government’s development strategy.
Hu Wenming, chairman of CSIC, who is also the former chairman of CSSC, said in the meeting that he hoped the two groups will increase efforts in communications and jointly promote the development of China’s shipbuilding industry.
The meeting was right after the China’s National People’s Congress Conference during which the government reaffirmed its plan to push forward further consolidation in many sectors including shipbuilding.
Splash reported last month that the central government has already been working on the merger but a concrete plan has yet to be brought on the table.
If the merger materialised, the shipbuilding competition between China and South Korea could be further intensified. This month, South Korean shipbuilding major Hyundai Heavy Industries signed an official contract with Korea Development Bank for the takeover of Daewoo Shipbuilding & Marine Engineering, which would create one of the largest shipbuilders in the world.
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.