The world’s largest shipbuilding group has been inaugurated in China. The group, which is the first-ever shipbuilding company in the world is valued at $112.2 billion, as reported by Business AM.
The Details: The group is a product of a merger between two of the largest state-owned shipbuilders by production capacity, China Shipbuilding Industry Corp (CSIC) and China State Shipbuilding Corporation (CSSC). This is according to the China State Shipbuilding Corporation (CSSC) in a statement.
Capacity: CSSC boasts of 310,000 employees and holds total assets of CNY 790 billion, a value estimated to reach $112.2 billion. This is coming after the Chinese state asset regulator approved the merger.
Elated about the merger, Hao Peng, Chairman of the State-owned Assets Supervision and Administration Commission (SASAC), noted that the establishment of China Shipbuilding Corporation would help bring moribund state enterprises to life and reposition the domestic shipbuilding industry for growth, and healthy competition. It’s also expected to strengthen the development of the national defence technology industry
About China Shipbuilding Industry Corporation: China Shipbuilding Industry Corporation (CSIC) is China’s state-owned shipbuilder. In addition to civilian vessels, such as freight carriers and oil tankers. CSIC also builds submarines and escort vessels, torpedoes and other weapons, as well as conducts offshore drilling. It is one of China’s top 10 military companies, helping to research and make about 80% of the Chinese navy’s main equipment.
CSIC was spun off from China State Shipbuilding Corporation in July 1999. It has about 150,000 employees, including China’s scientific and technological elites and about 40,000 engineers. It has six national research and development centres, and nine national-class laboratories. Its annual shipbuilding capacity is 15 million tons. It exports liquefied natural gas and liquefied petroleum gas carriers to more than 60 countries.
About China State Shipbuilding Corporation: The China State Shipbuilding Corporation (CSSC) is the largest shipbuilding conglomerate in the world. Headquartered in Beijing, the CSSC handles mostly shipbuilding activities in China.
CSSC is one of the top 10 defence groups in China. It consists of various shipyards, equipment manufacturers, research institutes and shipbuilding related companies. Some of the well-known shipbuilders in China such as Jiangnan Shipyard and Hudong–Zhonghua Shipbuilding are currently owned by CSSC. Its subsidiary, China CSSC Holdings Limited (SSE: 600150), is listed on the Shanghai Stock Exchange, and in turn, owns other subsidiaries including Shanghai Waigaoqiao Shipbuilding.
On 1 July 1999, some of its companies were spun off by the Government to form a separate conglomerate group, China Shipbuilding Industry Corporation (CSIC), which holds shipbuilding activities in the north and the west of China and CSSC deals with those in the east and the south of the country.
On 26 November 2019, Government of the People’s Republic of China established a new China State Shipbuilding Corporation with the holding company to merge with CSIC again after SASAC approved.