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CHINA'S SHIPBUILDING MERGER IS FINALISED

Tuesday, November 26, 2019 

China has now formally established the China Shipbuilding Group, as a result of the merger of the country’s two largest shipbuilders, China State Shipbuilding Corp and China Shipbuilding Industry Company, which was approved by the country's government in October 2019.

Chinese government sources quoted by the Reuters news agency claim this has created the world’s largest shipbuilder, which will be highly competitive in a market currently dominated by South Korea, two of whose largest shipbuilders are likewise planning a merger.
The new state-owned Chinese group has 147 research institutes, business units and listed subsidiaries, which in total employ 310,000 people. Total assets are about 790 billion yuan (US$112 billion). The merger is in accord with China's aim of streamlining its state sector through mergers and restructuring to tackle rising debt, increasing profitability and making the nationalised industries more responsive to market forces.

Chinese government sources quoted by the Reuters news agency claim this has created the world’s largest shipbuilder, which will be highly competitive in a market currently dominated by South Korea, two of whose largest shipbuilders are likewise planning a merger.

The new state-owned Chinese group has 147 business units research institutes, and listed subsidiaries, which in total employ 310,000 people. Total assets are about 790 billion yuan (US$112 billion). The merger is in accord with China's aim of streamlining its state sector through mergers and restructuring to tackle rising debt, increasing profitability and making the nationalised industries more responsive to market forces.

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