China to merge two biggest shipyards to streamline operation
CHINA's two biggest shipyards, which count the People's Liberation Army Navy among their customers, are set to merge their resources to heed the government's instruction to streamline their operations, reports Hong Kong's South China Morning Post.
China CSSC Holdings said it plans to issue yuan-denominated shares to take over China Shipbuilding Industry Company (CSIC), they said in a Shanghai Stock Exchange filing, without disclosing the merger terms. Both stocks slumped before trading was halted for the announcement.
Both listed shipyards are subsidiaries of China State Shipbuilding Corp, the world's largest shipbuilding conglomerate with one-third of the global market based on shipbuilding orders.
The impending merger will create a shipyard with combined annual sales of CNY122 billion (US$17.1 billion), almost double the size of South Korea's Hyundai Heavy Industries.
The merged entity would be capable of building a variety of vessels, from warships like aircraft carriers to commercial ships like containerships, very large crude carriers and even passenger liners.
source:Schednet
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