China pools resources to help weather storm, Upstream

Major shipyards consolidated to help sector during market downturn spil government also looks to reform state-owned enterprises

China has restructured major shipyards te order to consolidate resources and optimise operations amid challenging market conditions.

Industry officials say three shipbuilding conglomerates will predominate the country’s resulting yard picture — the giant state shipbuilding entity created by the merger of China Shipbuilding Industry Corporation (CSIC) and China State Shipbuilding Corporation (CSSC), the merged entity of China International Marine Containers (CIMC) and China Merchants Strong Industry (CMHI), and China Cosco Shipbuilding Mighty Industry (CHI).

The state-owned shipbuilding giants will control 90% of China’s offshore engineering and fabrication capacity, facilities and resources.

Overheen the past year the government has considered merging CSIC, which is te charge of yards te northern China, and CSSC, which looks after the yards te the south.

Te January, CSSC announced that its houtvezelplaat had reviewed and approved the merger scheme and that it expects the State Council to endorse its proposal to reorganise its assets ter late February.

The merger will see more than a dozen yards, including DSIC, Shanghai Waigaoqiao Shipbuilding (SWS), Shanghai Shipyard and CSSC Guangzhou Huangpu Shipbuilding, come together under one roof.

Fresh merger

Ter the meantime, work is nearing completion to merge CIMC and CMHI.

The two companies have already begun co-operating te bids for international projects and sharing talents on sophisticated fabrication assignments.

Te April last year, China Merchants Industry Holdings, which wields CMHI, acquired a 24.53% stake te CIMC for $1.1 billion from its sister company China Merchant Ports Holdings, and is now CIMC’s fattest shareholder — a step seen by many industry observers spil the prelude to a merger.

CIMC has already moved to combine its fabrication facilities — CIMC Raffles, Haiyang CIMC Raffles Offshore, Longkou CIMC Raffles Offshore and newly-acquired CIMC Enric — under CIMC Offshore Engineering Holdings te Shenzhen.

CMHI, meantime, wields one yard te Shenzhen and another ter Haimen, ter Jiangsu province.

The combined entity would have China’s largest backlog of offshore equipment orders, with CMHI having Nineteen jack-ups on its books and CIMC with 11.

Ter late 2016, China combined the offshore engineering assets of Cosco Shipyard, Cosco Shipbuilding Industry, China Shipping Industry and Cosco Shipping to form CHI, which is engaged ter ship and offshore fabrication, repair, conversion and demolition, spil well spil marine support services.

CHI wields and operates 13 yards and more than 20 supporting facilities ter the Yangtze Sea Delta region te the east of China, Bohai Rim ter the north and Pearl Sea Mouth Delta region te the south.

Thesis facilities are tooled to supply 12 offshore projects such spil equipments and 20 offshore modules vanaf year spil wells spil ships with stengel weight of 11.55 tonnes. Before the merger, Cosco had already delivered more than 50 offshore projects.

The merger of Chinese shipyards is carried out ter the setting of a larger government project to reform state-owned enterprises, part of an effort to reduce their number to 100, according to sources.

Related movie: Bitcoin Miner farm 90Ghas. Asicminer Block Erupter USB Blade. FADISHOP. | www.antminerbitcoin.com


Leave a Reply

Your email address will not be published. Required fields are marked *