Shipbuilding industry rides wave of restructuring

Though Chinese shipbuilding has yet to come in from the cold, recent restructuring, cuts in overcapacity and upgrades have given the troubled industry more hope, a report showed.

The industry received in 2013 new orders with dead weight tons (DWT) of 70 million, up 242 percent year on year, according to a report posted by the Information and Technology Ministry.

Altogether, 80 percent of these new orders went to the 20 industry leaders, the report said, up 5.5 percent on last year.

The industry had attracted orders for sophisticated ships, the report said, citing 6 liquified natural gas carriers and 4 Very Large Gas Carriers (VLGC).

Despite the progress, insiders believe that hard times for the industry are far from over, as it grapples with a recession caused by waning demand and higher costs, following the financial crisis of 2008. Chinese authorities have introduced a slew of measures to encourage upgrading and mergers.

Zhang Guangqin, president of the China Association of the National Shipbuilding Industry, said it will take at least another five years for the influence of overcapacity be eased.