China Shipbuilding Industry Corporation and China State Shipbuilding Corporation Limited merged into one corporation in Beijing on Tuesday.
This reorganized corporation has 147 scientific research institutes, enterprises and listed companies with total assets of 790 billion yuan (about 112.29 billion U.S. dollars) and 310,000 employees.
It has the largest shipbuilding and repairing base in China and the most complete research and development capability in the field of shipping, allowing its marine equipment to meet the requirements of international technical standards and safety conventions.
In recent years, China's shipbuilding industry has rapidly strengthened. Compared with the world-class shipbuilding powerhouses, however, China's research and manufacturing capabilities in the field of high-tech and high value-added ships are insufficient, while the industry has excess manufacturing capacity.
In a changeable international shipping industry with slowing global trade growth, the transformation and upgrading of China's shipbuilding industry are imperative, according to industry analysis.
This reorganization will help speed up the elimination of low-end backward production capacity and optimize the industrial structure of China's shipbuilding industry, said Hao Peng, director of the State-owned Assets Supervision and Administration Commission of the State Council.
He said the move is also conducive to accelerating the development of China's high-tech and high-value-added research and manufacturing capability, which can improve the strength of China's shipbuilding industry and its international competitiveness.