China has recently green-lighted the China State Shipbuilding Corporation (CSSC) and China Shipbuilding Industry Corporation (CSIC), a move seen to solidify the country's shipbuilding industry and enhance its global competitiveness.
China's Assets Supervision and Administration Commission of the State Council announced the approval. Reports said the merger of the Dalian-based CSIC and Shanghai-based CSSC will effectively establish a new shipbuilding giant with an estimated combined revenue up to 1 trillion yuan (US$141.5 billion).
Former CSSC chairman Lei Fanpei was appointed as the new chairman and party secretary of the new shipbuilding group, while former general manager and deputy party secretary of CSSC, Yang Jincheng, was appointed as the general manager and deputy party secretary.
CSIC's former general manager and deputy secretary, Wu Yongjie, was appointed as the director and new deputy party secretary.
The merger is expected to enhance the state-owned shipbuilding firm's scale to match that of Hyundai Heavy Industries, the world's largest shipbuilding company.
State-owned China Daily said aside from constructing conventional ships such as bulk vessels, container ships and oil tankers, both CSSC and CSIC have already begun to deploy more financial resources in developing ships such as mega-container vessels, LNG carriers, hospital ships, semi-submerged ships and ocean farms, as well as dual-fuel ships and gas-fueled ships with the latest wind-power technologies.
As of 2018, the state media said South Korean shipbuilders Hyundai and Samsung Heavy Industries Co., have obtained 86% of the world's total LNG orders.