Local shipbuilding enterprises have revealed that the industry slump has left them with virtually zero profit margins and yard workers have been asked to go on long term unpaid leave.
“The shipyard has not received any new orders in about two years and cash flow has been very tight,” Huang Andian, general manager of Jinlong Shipbuilding, was quoted saying.
Zesheng Group Shipbuilding’s general manager Liu Wuzhi noted that in 2013, the company generated a revenue of RMB210m ($34.3m) and a profit of RMB32m, but earnings this year are projected to decrease.
Another domestic yard Changhang Dongfeng Shipbuilding also gave feedback that it has been difficult to utilise yard facilities due to the absence of orders and the excessive shipbuilding capacity accumulated before the recession.
On a national level, Chinese yards bagged newbuilding orders with a total tonnage of 52.49m dwt in the first nine months of this year, up 37.9% year-on-year. But the orders were largely concentrated in state-owned yards and the larger private enterprises in key shipbuilding provinces of Jiangsu and Zhejiang.
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