China State Shipbuilding Corp (CSSC) is significantly expanding its production capacities. The state-run shipbuilding company announced the acquisition of two shipyards in Shanghai and Wuhan.
CSSC is taking over the facilities of Tianjin Xingang Shipbuilding in Shanghai, which include two large dry docks, as well as the Wuhan Wuchang Shipyard Hangrong. The purchase price amounts to around five billion yuan, which corresponds to US$690m.
As a result of the two acquisitions, the Tianjin site, whose own shipyard capacity is reportedly fully utilized until 2028, will have an additional volume of 2.4 million dwt.
Shipbuilding in China is currently experiencing an unprecedented upswing. Numerous shipyards have increased their capacities, most recently, for example, the privately managed company Yangzijiang, which invested over US$400m in an expansion.
Although capacities in South Korea and Japan are also growing, analysts say that shipyards in China still account for around two-thirds of all new orders for tankers, container ships and bulkers.
