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Jiangsu’s Nantong shipyards increase production value in 2014

Jiangsu’s Nantong shipyards increase production value in 2014
Nantong shipbuilders in China’s Jiangsu province have increased their newbuilding production value in 2014, according to figures from local authorities.

Last year, Nantong shipbuilding enterprises generated a combined RMB165bn ($26.6m) in newbuilding production, a jump of 14% compared to the previous corresponding period.

As at the end of 2014, Nantong was home to more than 400 shipyards, equipment suppliers and offshore marine companies.

Five leading enterprises saw their 2014 revenue in excess of RMB5bn, while the second-tier 12 enterprises recorded a combined revenue in excess of RMB1bn, government figures showed.

Nantong shipbuilders accounted for around 15% of China’s shipbuilding market share, while the offshore marine sector took up one-third of the country’s share.

Jiangsu is China’s largest shipbuilding province, with the shipbuilders typically completing around 23-25m dwt of newbuilding capacity annually. Some of China’s leading state-owned corporations such as China Cosco, China Merchants Heavy Industry and Zhenhua Heavy Industries have operations in Jiangsu’s Nantong city.

But amid the ongoing slump in the shipbuilding sector, the provincial government has set a target to reduce 10m dwt of yard capacity over the 2013-2017 five-year period.

The prestigious China ‘white list’ of shipyards saw 14 Jiangsu shipbuilders on the list. But among them, debt-ridden Nantong Mingde Heavy Industry will be acquired by compatriot Sainty Marine via a debt-to-equity rescue deal.

Elsewhere in China’s south central Guangxi province, shipbuilders have also recorded higher value in production last year.

Government figures showed Guangxi shipyards recorded new tonnage production value of approximately RMB320m, representing around 32% increase year-on-year.

Guangxi shipbuilders have a combined yard production capacity of 350,000 dwt each year, churning out on average 100 containerships and bulk carriers.

The higher production from Guangxi shipyards was attributed to the booming Zhujiang-Xijiang economic belt, which covers the areas of South China’s Guangdong province and Guangxi Zhuang Autonomous Region.

Meanwhile, China’s ministry of industry and information technology announced that Chinese shipbuilders have recorded a drop in new orders received for 2014. Chinese shipyards last year brought in 59.95m dwt of new contracts in tonnage terms, down 14.2% compared to the previous year figure of 69.84m dwt.

Up until 31 December 2014, Chinese yards sat on an order backlog of 148.9m dwt, a decline of 13.7% year-on-year.