China is seeking to restructure and upgrade its shipbuilding industry.
An article on the People’s Daily
Website reported the country’s National Development and Reform Commission said Friday “eliminating excess capacity in sectors like steel, cement and shipbuilding will be an important task for China's economic restructuring in the second half of this year.”
Shipbuilders are being “encouraged to develop high value-added ships and retire old ships in advance of their expiration dates” and explore "more profitable sectors such as marine engineering." Financial aid will be offered to shipbuilders considering expansion in the overseas market.
The report quoted Nie Lijuan, deputy secretary-general at the China Association of the National Shipbuilding Industry (CANSI), as saying a goal is to “ease the supply glut of low-end ships and boost technology competence in producing high-end ships.”
He added “Chinese companies are still not very competitive in producing high-tech vessels such as LNG ships and large container ships.”
According to the report, China Association of the National Shipbuilding Industry (CANSI) statistics show in the first half of 2013 Chinese shipbuilders received 22.9 million deadweight tons of new orders, up 113.2 percent year-on-year and accounting for as much as 44.2 percent of the world's market. Of that, 91.9 percent or 21.04 million deadweight tons came from overseas shipowners. - Chris Dupin