As part of the cooperation, Bank of Communications will provide CSSC with comprehensive credit facilities worth RMB40bn ($5.8bn) over the next five years, the local media reported.
Dong Qiang, chairman of CSSC, said the support from the bank is timely as the shipbuilder undergoes a period of internal reform, as well as a deeper focus on innovation and green shipping technology.
The shipbuilding industry is currently going through tough operating conditions due to severe oversupply and lack of newbuilding orders, leading to cashflow struggles for many shipyards.
Dong added that support from the banks is crucial to also help shipbuilders align themselves with national economic development strategies such as the Maritime Silk Road framework, also known as the One Belt One Road initiative.
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