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China State Shipbuilding Corp.

Shipyards

Design Institutes

Other Enterprises

  • Anqing Marine Diesel Engine Works
  • Anqing Marine Electric Device Works
  • Chaoyang Machinery Plant, Jiangxi
  • China Ship Power Station Corp
  • CSSC-MES Diesel Co.,Ltd.
  • Guangzhou Dockyards Co., Ltd.
  • Haiying Enterprise Group Co.,Ltd
  • Hudong Heavy Machinery Co.,Ltd.
  • Jiangxi Marine Instrument Plant
  • Jiangxi Marine Valve Plant
  • Jiujiang Changan Fire Fighting Equipment Co.,Ltd.
  • Jiujiang Haitian Equipment Manufacture Co.,Ltd.
  • Jiujiang Instrument Plant
  • Jiujiang Marine Machinery Plant
  • Jiujiang Zhongchuan Instrument Co.,Ltd
  • Luzhou Marine Works, Nanjing
  • Shanghai Marine Instrument General Factory
  • Shanghai Round-World Container Factory
  • Shanghai Waigaoqiao Shipbuilding Co., Ltd
  • South China Marine Machinery Factory
  • Xunyang Electric Instrument Factory, Jiangxi
  • Zhengmao Group Co.,Ltd
  • Zhenjiang CME Co. Ltd

In recent years, China has grown to become the worlds largest shipbuilder. However, there is a considerable gap to close for China to become a strong shipbuilding country in terms of value and technology. Chinas existing production capacity is still dominated by low value-added and low-tech ship types. The bulkers account for about 50 per cent of the total delivery, and the three mainstream cargo vessels bulkers, tankers and containerships together account for more than 90 percent.

Made in China 2025 clarifies the overarching strategic objective to become a nation strong in high-end shipbuilding and offshore engineering equipment manufacturing. Shipbuilding Industry Deepening Structural Adjustment, Accelerating Transformation and Upgrading Action Plan (2016-2020) put forward by the China Ministry of Industry and Information Technology (MIIT) proposes a series of plans such as eliminating low-end production capacity, increasing R&D investment, improving industry concentration level and efficiency, and achieving breakthrough in construction of large luxury cruise vessels. The Ship Equipment Industry Capacity Improvement Action Plan lays out the objectives of improving product spectrum and increasing the localisation rate of core ship equipment and components.

On 01 July 2019 it was reported that the two largest Chinese shipbuilding groups, China State Shipbuilding Corporation (CSSC) and China Shipbuilding Industry Corporation (CSIC), will come together for a "strategic restructuring". The merger is expected to create a global giant in the sector. The CSIC-CSSC merger is not expected to be a complex and difficult process and it could happen within the next one year. Unlike the merger of China Cosco and China Shipping Group (CSG), the coming together of the individual yards of the two shipbuilding groups is a rather straightforward process. Since CSSC and CSIC divided, Yangtze River as the boundary brought a lot of problems.

In 2018, the CSSC reported revenue of 114.4 billion yuan and net profit of 2.4 billion yuan, while its counterpart of CSIC was 305 billion yuan and 6.9 billion yuan respectively. On Fortune Global 500 list, the CSSC and the CSIC are ranked 393th and 245th respectively. As early as January 2015 there were reports that the China State Shipbuilding Corporation (CSSC) and the China Shipbuilding Industry Corporation (CSIC) were in the initial phases of combining units in order to beef up the national shipbuilding industry.

In NOvember 2017 CSSC Offshore & Marine Engineering, a subsidiary yard of China State Shipbuilding Corporation, announced a plan to bring third party investors in an effort to lower its debt ratio. According to the plan, the potential investors will invest up to RMB5.53bn in total into Guangzhou Shipyard International and Huangpu Wenchong Shipbuilding, two subsidiary yards of CSSC Offshore & Marine Engineering. CSSC said the investment into the subsidiary yards will lower the company's asset-liability ratio and financial risk while optimize the company's capital structure.

The debt restructuring move by CSSC was aimed at paving the way for a long speculated merger between the CSSC and CSIC. The other state-run shipbuilding conglomerate China Shipbuilding Industry Corporation (CSIC) had recently completed a similar debt restructuring plan of bringing strategic investors into two subsidiary yards Dalian Shipbuilding Industry and Wuchang Shipbuilding Industry.

Both of them are headquartered in Beijing, owned by the State-owned Assets Supervision and Administration Commission (SASAC). The CSIC is a far larger industrial entity than the CSSC. Research institutions and factories were left with CSIC, which is the reason why CSIC has stronger ability to research and provide the auxiliary items and CSSC has more mature system and market ability. The merger will give the new Chinese group the scale to match Hyundai Heavy Industries' proposed acquisition of Daewoo Shipbuilding and Marine Engineering Co Ltd.

With China's Yangtze River as a loose border, CSSC and CSIC operate businesses in the country's south and north, respectively. The shipyards of CSIC are located in northern China, and the group is the countrys largest builder of military ships. The group subsidiaries include Dalian Shipbuilding Industry, Bohai Shipbuilding Heavy Industry, Qingdao Beihai Shipping Heavy Industry, and Shanhaiguan New Shipbuilding Industry. CSSC shipyards, on the other hand, are scattered over southern China, and its subsidiaries include some well known names like Shanghai Waigaoqiao Shipbuilding, Jiangnan Heavy Industry and the rebranded CSSC Offshore & Marine Engineering Company (Comec).

The merger, which is still awaiting regulatory approval, will promote the upgrading of the shipbuilding sector and give a further push to related military industries, according to analysts. "A successful merger between the two shipbuilding giants, which have produced a majority of China's naval vessels, will benefit the development of the country's naval forces," a Beijing-based veteran observer surnamed Liu in the military field told the Global Times on 02 July 2019.

The new China State Shipbuilding Corporation is a state-owned conglomerate of 58 enterprises engaged in shipbuilding, ship-repair, shipboard equipment manufacturing, marine design and research. The workforce of 95,000 is located in East China, South China and Jiangxi Province. Major enterprises include Jiangnan Shipyard, Hudong Shipbuilding, Guangzhou Shipyard and China Shipbuilding Trading Company.

The China State Shipbuilding Corporation [CSSC] is a shipbuilding complex operating under the guidance of the State Council of China. It was originally formed in 1982, developed into a large enterprise group, rich in economic and technical resources and active in many fields of work, covering production, trade, research and development and education. CSSC, as the mainstay of the shipbuilding industry of China, produces a wide range of produces and has an all-round capability of designing, building and repairing. Main products include various categories of commercial ships up to 300,000 dwt, a great many types of naval ships, special purpose vessels, workboats and offshore units. Marine equipment, like marine diesel engines, diesel gensets, deck machinery, etc. are produced under licence or co-production agreements with international manufactures. In addition, a large variety of non-marine products, including installations, machinery and instrumentation, are made for more than 20 industries, like the energy, petrochemical, metallurgy, transportation, astronautics, building, medicine, environment protection and light industries.

CSSC, being technologically competent and fully capable for research, design and construction of naval ships, has developed and built for many years for the Chinese Navy nuclear submarines, conventional submarines, missile destroyers, missile frigates, missile fast attack crafts, hight-speed gunboats, anti-submarine patrol boats, minewarfare vessels, replenishment ships, training ships, electronic and weapon systems. It has also designed and built for the Chinese Army a variety of river-crossing facilities and other military equipment. Various types of naval vessels can also be designed and build according to the requirements of foreign navies and have been exported to many countries.

In early 1998 China State Shipbuilding Corporation (CSSC) began re-organising its massive shipbuilding resource in a move to capture a greater share of the global shipbuilding market. In the following 12 months, its main shipyards were to be amalgamated into production groups, each able to operate independently to take advantage of China's fast growing market-driven economy. The re-organisation of CSSC was part of a wider plan by China's Central Government, unveiled at the Ninth National People's Congress (NPC) at Beijing in March 1998, to streamline the operation of its ministries and state-owned enterprises. By cutting red tape, improving government efficiency and maximising resources, the re-organisation of government-owned enterprises aims to meet the demands of China's maturing market economy and the trend towards economic globalisation. Initially it appeared that the re-structuring of CSSC would consist of a structure under which CSSC shipyards would be consolidated into larger production groups in Guangzhou, Shanghai and Dalian.

Under the overall State Council initiative of 01 July 1999, the Chinese government split the top five Defense and Technology Corporations into ten new enterprises. These corporations are all large State Owned Enterprises (SOE's) under direct supervision of the State Council. These SOE's include the China State Shipbuilding Corporation (CSSC) and the China Shipbuilding Industry Corporation (CSIC).

In 1998, at least 30 shipyards in China were building steel structure sea-going vessels for export purpose (9 from CSSC, 4 from CSIC and 17 from others). The shipbuilding capacity for steel structure sea-going ships was around 4,500,000 DWTs (CSSC, CSIC and the others roughly share one-third each). Critical to the development of the industry was the decentralization of control of the shipyards. For example, the three major shipyards in Jiangsu Province with total shipbuilding capacity of 690,000 tons and an actual output of 368,000 DWTs in 1999 have been ceded to provincial control.

After the spinoff of CSIC, CSSC had a workforce of 95,000 people and incorporated 58 enterprises and institutions,which can be classified and enumerated as follows: key shipyards, dockyards and shipboard equipment manufacturing plants in East China, South China and the Jiangxi Province, namely, the Jiangnan Shipyard(Group) Co.,Ltd., Hudong Shipbuilding Group, and Guangzhou Shipyard International Co.,Ltd.; Key research and design centers, including Marine Design & Research Institute of China, China Ninth Design & Research Institute of the Shipbuilding Industry and CSSC System Engineering Research Institute; and a number of proprietary holding companies, like China Shipbuilding Trading Co.,Ltd., and other companies.

Following the 1999 organizational reforms, the integration of the military and commercial sides of Chinese shipbuilding was quite explicit. The shipyards that once built only warships turned their expertise and facilities to the construction of freighters and other vessels for commercial purposes. While CSSC continued to build and modernize ships in response to requirements from the Equipment & Technology Department of the PLA Navy, CSSC has also exported ships to more than 40 countries and regions including Japan, the United States, Germany, Norway, France, Switzerland, Iran, Canada, Hong Kong, Singapore and Malaysia.

Achieving acceptable quality from the low-tech low-wage Chinese shipbuilding industry remains a challenge, and international customers find that a good quality-control inspector is a prerequisite for building in China. Productivity remains short of Japanese and South Korean yards, but the gap is being addressed by management system changes, higher quality standards and links with leading Japanese and Korean companies.

As of early 1998 CSSC was considering the formation of three large shipbuilding groups which would be based in Dalian, Shanghai and Guangzhou. These would be in addition to the previously announced plan to create the country's largest shipbuilding group through the merger of Dalian New Shipyard, Dalian Shipyard and Bohai Shipyard into the Liaoning Shipbuilding Group. Guangzhou Shipyard International Co Ltd, listed on the Hongkong stock exchange, and Jiangnan Heavy Industrial Co Ltd in Shanghai are candidates for restructuring.

CSTC is the trade arm of China State Shipbuilding Corporation, specially engaged in export and import businesses of CSSC. Its line of business covers commercial & naval ship export, marine and non-marine equipment export, import of shipbuilding materials and equipment; technology import and export, compensation trade, coproduction, material processing and assembly, labor and technical service, construction projects including shipyard, equipment manufacturing plants, steel structures, industrial installation packages, high rise buildings, co-production and joint venture. Branch companies are distributed in Shanghai, Dalian, Tianjin, Guangzhou, Xi'an, Kunming, Wuhan, Jiujiang and Chongqing, and its trade and representative offices are set up in Hong Kong, Hamburg, Los Angeles, Bangkok, Islamabad, Moscow, London and Athens.



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