China's two largest shipyard groups plan to double capacity by 2010, challenging South Korea as the world's top builder. China State Shipbuilding Corp (CSSC) is expected to have a potential 12.3 million deadweight tonnes output by 2010m, up from 6.02 million last year. China Shipbuilding Industry Corp (CSIC) is expected to double its annual capacity to 10 million deadweight tonnes. China has 24 per cent of the global order book for new ships while South Korea has 33 per cent, according to London-based shipbroker Clarkson Plc. China's expansion may cause today's record prices for new ships to fall, especially as yards raise productivity.
China plans to take a 30 per cent share of the global shipbuilding market within the next ten years and aims to have as much as 80 per cent of equipment to be built locally. CSSC, aiming to become one of the world's top three shipbuilders, expects sales to more than double to 100 billion yuan (S$19.6 billion) by 2010 from about 40 billion yuan in 2006. CSIC, which has seven shipyards, aims to boost revenue to 100 billion yuan from 62 billion yuan, according to Bloomberg.
The biggest challenge for China 'will be skilled workers', according to Lloyd's Register. In response to such challenges, CSIC intends to cut the man-hours required for each tonne built by half to 20-25 by 2010 from 40-50 today. CSSC, in turn, said it has cut the construction period of a 175,000 DWT bulk carrier to 300 days from 480 days at the start of 2005.