Shipbuilding, steel and machinery manufacturing are three of the nine sectors that have been identified yesterday by the Ministry of Industry and Information Technology for a period of aggressive mergers. The nine industries involve around 900 listed companies, accounting for nearly half of all A-share listed companies.

The target on shipbuilding is, by 2015, the completed shipbuilding volume of the top ten domestic shipbuilders will account for more than 70% of the total volume, a far less fragmented picture, and one that is more akin to rival Korea. The aims is to have five Chinese shipbuilding companies on the list of the world top 10, as well as having five to six general contractors and a batch of subcontractors involved in the marine engineering equipment sector that will have international influence.

The shipbuilding merger activity officially got underway with plenty of share swapping among CSSC’s Shanghai yards designed to give Shanghai Waigaoqiao Shipbuilding a far greater focus on higher value ships.

Zhu Hongren, an official from the Ministry of Industry and Information Technology, said the major reason for the government to adjust these industries is the serious overcapacity.

The shipping industry has not been covered in the coming merger boom.

Source: Sino Ship News