China's 2 Largest Shipyards Plan to Merge to Create the World's Biggest Builder

China to Dominate Shipbuilding Market

China is poised to further dominate the global shipbuilding market with the merger of its two largest shipyards, China State Shipbuilding Corporation (CSSC) and China Shipbuilding Industry Corporation (CSIC).

World's Biggest Shipbuilder

The combined entity, to be known as China Shipbuilding Group, will create the world's biggest shipbuilder, with an estimated 20% market share.

Merger Details

The merger, subject to regulatory approvals, is expected to be completed by the end of 2023. The combined company will have over 300,000 employees and annual revenue exceeding $80 billion.

Dominating Market Share

• China's shipyards currently account for over 40% of global shipbuilding capacity.
• The merger will further strengthen China's dominance in the industry.

Implications for the Global Shipbuilding Market

The merger is expected to have significant implications for the global shipbuilding market:

• Increased competition for other shipyards worldwide.
• Potential for lower prices for ships.
• Greater efficiency and consolidation in the shipbuilding industry.

Impact on Global Trade

China's dominance in shipbuilding is expected to have a ripple effect on global trade:

• China's increased shipbuilding capacity will support its growing maritime trade.
• The merger could lead to changes in shipping routes and logistics.

Conclusion

China's shipyard merger is a major development in the global shipbuilding industry. The combined entity will create a formidable competitor with significant implications for the global market and international trade.

References

• Reuters: China's biggest shipbuilders set to merge
• Maritime Executive: CSIC and CSSC to Merge to Create Largest Shipbuilder in the World