The China State Shipbuilding Corporation (CSSC) has indicated further restructuring in line with the country's defence industry reforms.
The state-owned group said on 5 July that its latest round of industrial reorganisations has focused on one of its most important naval ship constructors, the Dalian Shipbuilding Industry Corporation (DSIC), which is headquartered in the northeastern coastal province of Liaoning.
CSSC said that the restructuring of DSIC will feature the consolidation of some of its “regional assets” – presumably located in Liaoning – as well as the restructuring of DSIC businesses that develop and build propulsion systems, including propellers and marine valve systems.
It said the restructure is intended to strengthen “technological innovation” and spur industrial efficiencies across DSIC. Although focused on shipbuilding – in which DSIC operates about 10 subsidiary firms – the company is also involved in business sectors including mining, materials, engineering, financial services, and hotels.
CSSC said, “The regional integration and substantive reform [of DSIC] is a concrete measure to thoroughly implement the spirit of [Chinese president] Xi Jinping's important instructions and accelerate the reorganisation and integration of group companies.”
DSIC is involved in many of China's most high-profile naval programmes including the construction of aircraft carriers, Type 052D destroyers, and Type 055 destroyers.
The restructuring of DSIC follows similar efforts – led by CSSC since the start of 2021 – to reorganise and consolidate other shipbuilding and related assets and corporations in Shanghai, Guangzhou, and Chongqing.
CSSC has confirmed restructures in these locations but has not revealed any details. In these provinces, CSSC operates several important naval shipbuilding enterprises including the Shanghai Waigaoqiao Shipbuilding company, Chongqing Chuandong Shipbuilding, and the CSSC Offshore & Marine Engineering Company (formerly Guangzhou Shipyard).
Looking to read the full article?
Gain unlimited access to Janes news and more...
