The consolidation of China’s shipbuilding sector is continuing apace as bottom-rung yards exited the business amid the market recession, and by 2020 China could be left with less than 10 shipyards, according to Ren Yuanlin, executive chairman of Yangzijiang Shipbuilding.

Ren, speaking to the local media, said China’s shipbuilding market is going through a reshuffling and consolidation stage, and at the end of China’s 13th Five-Year Plan (2016-2020), only 10 shipyards will be left, and Jiangsu province will have three to five left. Privately-owned Yangzijiang is based in Jiangsu.

“A part of China’s 13th Five-Year Plan will be to reshuffle the shipbuilding industry, which will see widespread bankruptcy of yards, major reorganisation and state-owned shipbuilding corporations will continue to stand despite suffering losses. Privately-owned yards, on the other hand, will shut down one after another,” Ren was quoted saying.

In 2015 alone, more than 20 shipbuilding enterprises of large to medium sizes have declared bankrupt, with STX Dalian Shipbuilding being one of the biggest yard to have failed.

“Looking into 2016, the already depressed global shipping and shipbuilding markets will only get worse,” Ren commented.

Outspoken shipping boss Ren had told Seatrade Maritime News earlier that he predicted China will be left with 20 to 30 shipbuilding companies in the next few years ahead of 2020.

With more than 3,000 shipbuilding enterprises, mostly speculative yards, counted at the start of 2010, that number has dramatically plunged to only around 300 today, and only a little more than 100 yards have active day-to-day operations.