Shanghai: Jiangsu government has released a guidance opinion for supporting the local shipbuilding industry, in which it has called for local financial institutions to offer more financing support for local shipyards.
The government has specifically asked for financial support for shipyards in merger and acquisition deals, especially to offshore equipment makers. It has also called for an expanded portfolio of financing products on offer, and encouraged banks to support bond issues of shipbuilding companies.
Jiangsu is the largest shipbuilding province in China. According to statistics from Jiangsu Commission of Economy and Information Technology, the shipyards in the province delivered 262 vessels with a total capacity of 12.38m dwt in the year of 2014, accounting for 31.7% market share in China and 13.2% globally.
For the first two months in 2015, shipyards in Jiangsu have received new orders for 37 vessels with a total capacity of 1.1m dwt, sharply down by 78.9% compared to last year.