China Plans Shipbuilders' Merger

By ,   March 31, 2018 ,   Cruise Industry

The government of China is working on a plan to combine its two largest shipbuilders to create an industrial behemoth that would dwarf South Korean rivals.

The state council, the cabinet of the country, has given preliminary approval to merge China State Shipbuilding Corporation (CSSC) with China Shipbuilding Industry Corporation (CSIC). The two companies feature combined revenue of at least 508billion yuan (US$81billion) making products ranging from aircraft carriers for the navy to ships to carry oil, gas and containers for commercial companies.

CSSC and CSIC have not responded to requests for comments. In separate exchange statements, the CSSC units said their parent had not received any government notice about a merger and had no discloseable information. In a statement, CSIC unit China Shipbuilding Industry Co. said that its parent had not received any written documents from the government oncerning a merger or held talks with CSSC or its subsidiaries.

Port of Shanghai

The giant resulting from this merger will have over twice the combined annual revenue of South Korean Hyundai Heavy Industries, Daewoo Shipbuilding & Marine Engineering and Samsung Heavy Industries, the world’s 3 largest shipbuilders by market value. 

CSSC and CSIC were established in July 1999 under a plan to raise competition and efficiency among country’s defense companies.