State-owned China Shipbuilding Industry Corporation (CSIC) has announced the completion of an internal integration of its two subsidiaries, with Dalian Shipbuilding Industry Co (DSIC) taking Shanhaiguan New Shipbuilding Industry under its belt.

Shanhaiguan is now 100% owned by DSIC, which in turn is wholly-owned by CSIC.

The internal reorganisation by CSIC is part of the consolidation and streamlining efforts made by state-owned corporations amid the severe shipbuilding industry slump in order to utilise resources more efficiently and reduce operating costs.

The problem of overcapacity in China’s shipbuilding sector can also be dealt with through such integration moves.

Meanwhile, CSIC is also in the midst of transferring the assets of its subsidiary Qingdao Beihai Shipbuilding Heavy Industry to another of its subsidiary Wuchang Shipbuilding Industry Group, in another consolidation move.