Major surface combatant shipyards are located in Dalian, Shanghai, Guangzhou, and Hudong. Guangzhou [Kuang-chou] Shipyard Tung-lang is located adjacent to the Guangzhou Iron and Steel Plant. Guangzhou shipyard used to be a state owned enterprise parented by China State Shipbuilding Corporation (CSSC).
By mid-2015, two shipbuilding giants, China Shipbuilding, CSSC Holdings Ltd and Guangzhou Shipyard International Co Ltd., were in line for mergers. But there had been no official confirmation. There is a problem of excess capacity and extremely low returns on investments in the SOE business, which the government wants to tackle through mergers. China’s state-owned enterprises have long held a commanding position in the country’s still tightly controlled economy, dominating telecommunications, banking, oil and other key strategic sectors. The companies have an advantage over private enterprises because of easy access to credit and links to government agencies, but their rate of return on investment has been poor, at about 2.5 percent. That’s even less than returns on bank deposits.
Since the re-organization in 1993, Guangzhou Shipyard was divided into two entities: one is Guangzhou shipyard international company limited (GSI), which was established on the base of original major production system. Another, although still called Guangzhou shipyard (GS), actually only owns Guangda Industrial Co.,Ltd., a company specializing in fabricating marine products, as well as providing some service. Guangzhou Shipyard International Co., Ltd. (GSI), which was reorganized from Guangzhou Shipyard, is a sino-foreign joint stock company registered in China, enjoying autonomy in export and import operations. In 1993, GSI issued H-shares in Hong Kong and A-shares in Shanghai. The structure of the shares is like this: 42.61% is owned by the State, 25.57% by domestic holders and 31.82% by overseas H-share holders.
GSI is the largest modern integrated shipbuilding enterprise in South China and one of the 500 biggest enterprise in China. For many years, GSI has adhered to the policy of " Diversified operations with shipbuilding at its core" and at the same time foster the spirits of GSI, i.e. "Unite to make creation and contribution."Further more, GSI carries out the business strategy of diversified development amid market competition so that the Company makes achievements in the fields of new products development, shipbuilding workmanship, fundamental construction and economic profit. In this way GSI has formed several main business, such as shipbuilding, container manufacturing, shiprepairing, large-size bridges, steel structure engineering, port machinery, electric lifts, refrigerator production line, tobacco processing facilities, hydraulic machinery, pressure tanks and speed boats.
Shipbuilding is GSI's core business. It owns three building berth with capacity of 10,000dwt, 30,000dwt and 40,000-60, 000dwt respectively, and it owns a 680-meter long shipbuilding quay. Shipbuilding can build various kinds of vessels under 60,000 dwt in compliance with the rules and regulations of main international ship classifications. Since 1993 the annual shipbuilding capacity has been over 200,000dwt with annual ship output of 10 vessels. For many years GSI has relied on technical progress and absorbed the advanced shipbuilding technology of the world. GSI has carried out a system of production design, area arrangement, pallet management, accuracy management, section module, super structure fabrication & lifting and hull & outfitting & painting integrated management, adopting new technology and workmanship and carrying out modern management widely to improve ship type exploiting and ship design level, shortening shipbuilding period and becoming a modern international group of shipbuilding.
Over more than 40 years, Guangzhou Shipyard has built over one thousand ships, whose products have been exported to various countries and regions in America, Europe, Asia and southern Pacific. The descriptions include containerships, multipurpose ships, bulk cargo carriers, cargo-passenger vessels, crude oil tankers and product tankers as well as merchant ship and military vessels.
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