China poised to gain con­trol as ship­yard shake­out looms

China Daily (Hong Kong) - - BUSINESS DIGEST -

China grew into the world’s lead­ing ship­builder over the last decade as hun­dreds of pri­vate yards opened to com­pete with Staterun com­pa­nies, bloomberg said. Now, China is poised to re­gain con­trol as the in­dus­try heads for con­sol­i­da­tion. The num­ber of ship­yards has swollen to 1,647, con­tribut­ing to a global ca­pac­ity glut. To sta­bi­lize the in­dus­try, one-third to one-half of the yards will prob­a­bly have to dis­ap­pear through ac­qui­si­tions and clos­ings, ac­cord­ing to ex­ec­u­tives and an­a­lysts. State-run com­pa­nies are at an ad­van­tage be­cause they have eas­ier ac­cess to credit to pay work­ers, buy raw ma­te­ri­als and pro­vide fi­nanc­ing for clients. China State Ship­build­ing Corp, China Ship­build­ing In­dus­try Corp and other gov­ern­ment­backed com­pa­nies won three-quar­ters of all or­ders in the first half of this year.

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