China’s New Shipbuilding Giant to Challenge Global Leader After Blockbuster Merger
After two decades of charting separate courses, China’s two state-owned shipbuilding heavyweights look set to join wakes once more as part of the government’s drive to consolidate the state sector.
Subsidiaries of China State Shipbuilding Corp. Ltd. (CSSC) announced in various filings that their parent is planning a restructuring that will result in its merger with China Shipbuilding Industry Corp. (CSIC). The announcement was made on July 1 — 20 years to the day that the two companies said they would split.
The pair’s shipbuilding empires accounted for 49% of shipbuilding or repair work orders from Chinese companies last year, and 20.85% of orders globally, according to a Caixin credit report. With CSSC assets worth 300.68 billion yuan ($43.71 billion) and CSIC holding 486.945 billion yuan of assets, the recombined company would control almost 800 billion yuan of assets.