The two "super shipyards" formed by the integration of China's and South Korea's shipbuilding industry will change the pattern of the global shipbuilding industry and may push up the price of ships.
Two "super shipyards" dominate the market or push up the price of the ship
According to the Wall Street Journal, VesselsValue data shows that the merger of CSSC and CSSC, and the merger of Hyundai Heavy Industries and Daewoo Shipbuilding will form two shipbuilding giants, accounting for approximately 46% of the global shipbuilding market controlled by the world's top 10 shipyards. % share.
In addition to the dominant market share, the two shipbuilders either received stable financial support and assistance from state-owned banks, or received a large number of new ship orders from state-owned shipowners to compensate for the lack of orders. Due to the enormous pressure to improve performance, the two major shipbuilding groups of China and South Korea will compete directly in the field of shipbuilding such as high value-added LNG ships. This will make it difficult for other small and medium-sized ship companies in China and South Korea, as well as shipbuilding companies in other countries such as Japan, to compete with them, and it is likely to push up the price of the ship.
Shipping industry experts predict that the momentum of the industry's recovery, which has just started, will accelerate in the next few years, driven by the energy market megatrends and new regulatory regulations.
South Korea has the upper hand, China is obviously behind
At present, the merger of Hyundai Heavy Industries and Daewoo Shipbuilding seems to have the upper hand. Hyundai Heavy Industries - Daewoo Shipbuilding has a total of 326 combined orders, slightly lower than the 428 ships after the merger of the two major Chinese groups. However, the value of Hyundai Heavy Industries - Daewoo Shipbuilding Handheld has exceeded $33 billion, much higher than the $19 billion in the merger of China's two major groups.
At the same time, Hyundai Heavy Industries - Daewoo Shipbuilding currently holds 54% of the world's LNG carriers with hand-held orders, while CSIC-China Shipbuilding Group holds only 7%. China Shipbuilding Heavy Industry Co., Ltd. has a larger share of low-yield bulk carriers, accounting for 31% of the bulk orders of bulk carriers, while Hyundai Heavy Industries - Daewoo Shipbuilding only accounts for 15%.
Olivia Watkins, chief freight analyst at VesselsValue, said: "Not only the LNG ship's hand-held orders, Korean ship companies outperform China in terms of quality, reputation and standards, which means that Korean ships will get more throughout their operating cycles. High value."
Six months after Hyundai Heavy Industries and Daewoo Shipbuilding announced the merger, CSIC and CSSC announced an integration plan in early July. A senior member of CSSC said: "We must unite to compete with South Korea. It is expected that the Korean side will soon get approval from all regulatory authorities, and we will get approval in a few months. But the basic situation is that we are now Almost all ships are at the same level, and it will be harder to compete with our opponents if we are still fighting each other." (source:eworldship.com)
