China Government to Upgrade & Restructure Shipyards

The State Council has issued a three-year plan, ending in 2015, to upgrade and restructure the mainland's troubled shipbuilding industry, a further move to stabilise economic growth, reports the South China Morning Post (SCMP), citing Xinhua.

The sector faced "unprecedented, severe challenges" as a lack of new orders, owing to weakness in the global shipping market, had exacerbated overcapacity in the industry, Xinhua reported, citing a government document.

The sector is among those - including iron and steel, cement, electrolytic aluminium and flat glass - that must accelerate the phasing out of overcapacity, according to a July 24 statement from the Ministry of Industry and Information Technology, cited by SCMP.

Under the government's current five-year economic plan, which runs to 2015, targets for the sector include upgrading shipbuilding standards and developing higher-value-added products.

Source: South China Morning Post