China State Shipbuilding Corporation (CSSC) and China Shipbuilding Industry Company (CSIC) have finalized their re-merger on November 26, creating a new shipbuilding leviathan which will retain CSSC’s name and brand identity.
The aim was to create a shipping firm that can compete with global heavy-weights in the maritime industry, including South Korean Hyundai Heavy Industries that is in the process of acquiring Daewoo Shipbuilding and Marine Engineering.
The merger will manage the largest shipbuilding and repair facilities in China. Supported by the shipping research and development abilities, the company will be able to fulfil the global technical standard and safety agreements.
Assets Supervision and Administration Commission director Hao Peng said the merger will enable the company to remove low-end backward production capacity and improve the industrial structure of the shipbuilding industry in the country.
He added that the CSIC-CSSC merger will accelerate the development of high-tech and high-value-added research and industrial capability in China. It will strengthen the shipbuilding industry in China and worldwide.