History of ship building industry in China

China has appeared only in a relatively short time on the map of the world shipbuilding
nations.
the industrial shipbuilding in China has his roots already in the 19-th century (cf. The
European Community in 2004, 9pp)
Up to this time the Chinese shipbuilding limited itself particularly to the construction of sail
and fishing boats.
The present development of the Chinese shipbuilding occurs after the same pattern as
earlier in Japan (1950s) and Korea (1960s).
China was start with the process of repeating these paths of development, supported by
large government investments in the shipbuilding industry (Malhotra 2005).
In 1950s all shipyards of China had been put under the control of the Ministry of
Communication.
Since 1982 China State Shipbuilding Corporation (CSSC) is responsible for the Chinese
shipbuilding industry.
Finally, In the 1990s the Chinese government felt constrained to initiate structural reforms
in the shipbuilding sector on account of the size of the Chinese shipbuilding industry and the
planned entry of China to the World Trade Organization (WTO).
The most important structural change in the Chinese shipbuilding industry in 1999s which is
Chinese government decided to split CSSC into two organizations (CSSC and CSIC) operating
independently from each other.

Competition between world region

In 2005 China was already the third biggest shipbuilding nation worldwide behind South
Korea and Japan.
Early, the Chinese shipyards delivered only 0.9 per cent of all worldwide built ships in 1985,
the number has increased to 4.7 per cent only 15 years later.
The development between 2000 and 2005 must be emphasized. In this period China has
nearly succeeded in tripling its share of the world market.

Shares of regions in the world shipbuilding production from 1975 to 2005 in per cent
on GT-base (Source: VSM 2006)

On the base of the new building orders in the period from 2002 to 2005 (measured in GT) it
appears that China and Europe stand in strong competition

CESA and China - new building orders from the year 2002 to 2005 on GT base
(Source:ISL/IAW)

Structure of China Shipbuilding Industry

Nowadays the number of shipyards in China is estimated at approximately 2,000 3,000.

Classification societies assume from the fact that at most 10 per cent of these shipyards are
able to produce for the export (Germanischer Lloyd 2005, 15).
As a result of the future consolidation process of the Chinese shipbuilding industry (also by
mergers and bankruptcies) western experts expect that the number of the Chinese
shipyards, competitive at the world market, will decrease in the next 10-15 years.
In spite of the relatively high number of Chinese shipyards the Chinese shipbuilding industry
is dominated by the two big groups CSSC and CSIC.
Both groups are concentrating more than 60% of the Chinese shipbuilding production with
more than 70% of all new building orders placed in China.

China State Shipbuilding Corporation (CSSC

CSSC was founded originally in 1982 with the purpose to organize the Chinese shipbuilding
sector afore controlled by the Chinese communication ministry.
CSSC is responsible for the shipyards located on the east coast of the Yangtze delta and in
the southern regions of China.
In 2004 CSSC was already the fourth largest shipbuilding corporation in the world:

All together the group CSSC directly employs more than 95,000 people. The enterprises of the
groups CSSC are concentrated in the area around Shanghai, Guangzhou and other cities in the
provinces of Jianxi and Anhui. The most important CSSC shipyards are:

Chengxi Shipyard

Guangzhou Shipyard International Co. Ltd

Guangzhou Wenchong

Hudong Zhonhua Shipbuilding (Group) Co. Ltd

Jiangnan Shipbuilding (Group) Ltd

Jiangzhou Shipyard

Shanghai Shipyard

Shanghai Waigaoqiao Shipbuilding Co. Ltd

Tianjin Xingang Shipyard

Wuhu Xinlian Shipyard Ltd.

China Shipbuilding Industry Corporation (CSIC)

After the splitting of the former CSSC in 1999 the responsibility for more than 48 industrial
enterprises and 28 research institutes was transferred to the CSIC.
CSIC companies are located in more than 20 provinces in the northern part of China,
especially in the bay of Bohai. All together approximately 160,000 people are directly
employed by CSIC.
The most important shipyards of CSIC are:
1. Bohai Shipbuilding Heavy Industry Co. Ltd
2. Dalian Shipyard Co. Ltd
3. Dalian New Shipbuilding Heavy Industries Co. Ltd
4. Qingdao Beihai Shipbuilding Heavy Industry Co. Ltd
5. Shanhaiguan Shipyard
6. Wuchang Shipyard.