The new Cosco Shipping Heavy Industry has been carved out from the merged Cosco Shipping, combining the shipbuilding entities of Cosco Shipyard and Cosco Shipbuilding Industry Company, previously under China Cosco Group, and China Shipping Industry Co previously under China Shipping Group.
Cosco Shipyard, Cosco Shipbuilding Industry Company and China Shipping Industry Co have a combined shipbuilding capacity of 11.55m dwt, and they repair approximately 1,500 ships per year.
According to the restructuring plan of Cosco Shipping, Cosco Shipping Heavy Industry aims to shrink down its shipbuilding capacity to 10.6m dwt by end-2017, and further down to 9.6m dwt by end-2020.
Cosco Shipping will use the old China Cosco Group’s subsidiary Cosco Shipbuilding Industry Company as a restructuring platform and transfer all shipbuilding and ship repair assets, including Cosco Shipyard, China Shipping Industry Co, NACKS (Nantong Cosco KHI Ship Engineering) and DACKS (Dalian Cosco KHI Ship Engineering), into the platform.
Cosco Shipyard will also close down some ship repair docks and reduce capacity at its Shanghai facility, while China Shipping Industry’s Jiangsu yard will be shut down.
Cosco Shipping, formed from the merger of China Cosco Group and China Shipping Group, was officially launched in February 2016. The group’s various subsidiaries have gone through organisational restructures, including changing of company names to reflect their respective business strategy going forward.