Shanghai-listed CSIC is seeking to expand its offshore building capacity to collect higher margins as demand for merchant vessels is shrinking due to overcapacity.
The company enjoyed margins of around 18-21% for building offshore and energy-related vessels last year, close to double of the 11% margin for merchant vessels.
The bigger move into offshore is in line with Beijing's aim to raise China's share in the world's offshore building market to 20% by the end of 2015 from 7% in 2010.
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