Chinese shipbuilding capacity to drop 30% by 2015

Beijing is determined to lead the shipbuilding industry to upgrade and transform, primarily through reducing capacity, Bao Zhangjing, director of the China Shipbuilding Industry Research Center told delegates at the Cosco-organised World Shipping Summit in Ningbo today.

“In the first three quarters of this year, the occupancy rate of China’s shipbuilding capacity has dropped to 50%-55%, the overcapacity problem is very serious,” Bao warned.

The government has introduced several policies to reduce capacity by prohibiting new yards and drydocks, encouraging mergers and shifting capacity to other industries. Shipyards which have not been getting any new orders for a certain period of time will also be eliminated. “However, the aim of the policies are not simply reducing capacity, but to enhance the overall competitiveness of the industry,” Bao said.

“Through all these efforts, it is estimated that China’s overall shipbuilding capacity will be reduced by 30% in 2015,” Bao concluded.
Source: SinoShip News