Liang Yanfeng, the general manager of CSHI said that it would be closing down three yards in Nantong, Zhoushan and Dongguan by 2020, China Daily reported. Two other offshore yards Qidong and Dalian would remain open with the capability to build high-end units such as ice-class vessels and drilling platforms.
The shipyard group will also be cutting its offshore product range by half from 18 to nine by 2020.
The shipbuilding group has been hit by overcapacity, and order cancellations and delivery delays from owners.
"In addition, declining international oil and shipbuilding prices, growing material and labor costs have all become factors to squeeze shipyards' earning ability globally,” Liang said.
Copyright © 2024. All rights reserved. Seatrade, a trading name of Informa Markets (UK) Limited. Add Seatrade Maritime News to your Google News feed.
