Chinese shipping giant named world's largest shipbuilder following merger

  • AseanPlus News
  • Wednesday, 27 Nov 2019

BEIJING (ANN): China Shipbuilding Corp was officially unveiled on Tuesday(Nov 26) in Beijing as the world's largest shipbuilder.

The giant corporation was created through the merger of China State Shipbuilding Corp and China Shipbuilding Industry Corp, the country's two biggest shipbuilders by production capacity.

The merger was approved by the State-Owned Assets Supervision and Administration Commission of the State Council.

The new company has about 310,000 employees, 147 subsidiaries including manufacturing complexes nationwide and 35 institutes as well as total assets of 790 billion yuan (US$112bil). Major military hardware deployed by the People's Liberation Army Navy, such as aircraft carriers and submarines, were designed and built by subsidiaries of the company, according to a statement published by the conglomerate on Tuesday.

In addition to military products, the company also has strong research and production capabilities with regard to civilian ships such as liquefied natural gas container vessels and very large cargo carriers, it said.

"China Shipbuilding Corp will uphold national strategies about building strong marine and manufacturing industries, boosting science and technology, developing the military into a world-class force and transforming the company itself into a top-tier enterprise," the statement said.

"We will strive to become a top-class shipbuilder with a competitive edge in the global market."

Lei Fanpei, chairman of the new company, said at a ceremony in Beijing on Tuesday marking the company's establishment that the merger represented the attention from and expectations of the Communist Party of China Central Committee and President Xi Jinping regarding the country's shipbuilding industry.

"The strategic merger was guided by the CPC Central Committee and State Council and is very meaningful to improving the competitiveness of our nation's marine and manufacturing sectors and fostering our science and technology," Lei said after the ceremony.

"It is also important for the growth of the country's defence technology industry as well as the reform and development of State-owned enterprises," the chairman said, adding that the new company will have better resources, a higher level in science and technology and a stronger capability to compete in domestic and international markets.

Both China State Shipbuilding Corp and China Shipbuilding Industry Corp, set up in 1999 as the result of the breakup of the former China State Shipbuilding Corp, were headquartered in Beijing.

China State Shipbuilding Corp's major assets were in southern parts of China while those of China Shipbuilding Industry Corp were mainly in the nation's northern regions. - China Daily/Asia News Network

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