Chinese shipyards in Chongqing province have managed to increase the value of its completed newbuilding tonnage amid the severe industry recession, according to data from the local government.

In 2014, Chongqing shipbuilders completed new vessel tonnage with a combined value of RMB20bn ($3.2bn), an increase of 14.5% compared to the same period of the previous year.

Chongqing shipbuilders have also been finding it hard to win new orders during the past three years, and the rising cost of shipbuilding has also put extra pressure on their businesses.

“The oversupply of yards is the main cause of the shipbuilding industry slump,” a Chongqing-based ship repair source was quoted as saying.

The source added that there is an urgent need to consolidate the shipbuilding sector and phase out the bottom-rung and speculative yards.

Since early 2014, close to 40 domestic shipyards have shut down due to the ongoing industry slump.

Meanwhile, the Chongqing government is planning to introduce a series of policies to promote the development of the shipbuilding industry as well as the equipment and ancillary services.