China poised to gain control as shipyard shakeout looms
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.