China Keeps Expanding for shipbuilding industry

China's shipbuilding industry still kept steady growth in 2009 even with the recessed markets of international shipping and shipbuilding. The Chinese accomplished shipbuilding output reached 42.43 million DWT in 2009, up 47 per cent year-on-year and accounting for 34.8 per cent in the world’s total, ranking in second place.

Promoted by policies like export buyers credit, the Chinese shipbuilding enterprises contracted new orders of 26 million DWT, a 61.6 per cent share of global new vessel orders, and ranking the first place worldwide.

Of the three leading ship types, oil tanker and containership markets were in the downturn in 2009, while the bulk carrier market performed actively, and 170,000-ton bulk ship, 57,000-ton bulk ship, and second-hand bulk ship were highlighted. In addition, the bulk cargo ship was also the main force in export trade, and Chinas export of bulk cargo ships achieved USD8.97 billion in 2009, taking 31.6 per cent of the total export value.

There were 11 shipbuilding enterprises each with over one million DWT of accomplished shipbuilding output in China in 2009. The China State Shipbuilding Corporation (CSSC) witnessed an accomplished shipbuilding output of 170 ships in 2009 exceeding 10 million DWT for the first time and reaching 10.75 million DWT; with an increase of nearly three million DWT yr-on-yr. CSSC ranked No.1 among Chinese shipbuilding enterprises and was in the world’s top three shipbuilding groups.

Both the main business revenue and profit of the shipbuilding industry maintained a fast growth rate of over 30 per cent in such provinces and municipalities as Jiangsu, Shandong, Fujian, Anhui, Hubei and Chongqing in 2009, in particular, Jiangsu province performed most outstandingly, with an accomplished shipbuilding output of 15.46 million DWT with a year-on-year growth rate of 73.9 percent, ranking the first position in China, accounting for 36.4 per cent in Chinas total, as well as 12.6 per cent of the world total.

Although Chinas shipbuilding industry made remarkable achievements under the guidance of a series of policies like China's Shipbuilding Industry Adjustment and Boosting Plan in 2009, there is still not a clear sign of recovery in Chinas economy in 2010. Therefore, the shipbuilding enterprises should be cautious of industry risks caused by overcapacity, and external risks like order cancellations, inadequate orders and difficulty in bank credit.

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