Tuesday, March 3, 2009

Small and medium sized yards in China lose out

Large shipbuilders in China will benefit from the economic stimulus plan handed out by the Chinese Government however; small and medium sized yards are likely to continue to face challenges.

Small and medium sized builders in Zhejiang, Fujian and Guangdong provinces have been facing difficulties since the financial downturn began in September last year. Many owners have even considered shutting down their privately owned yards. The total ship order in the Zhejiang province alone is 25.55 million tonnes which should technically be enough to hold up all the yards in the province for the next three years, however many of the vessels ordered are large ships, which small and medium yards are unable to build. Experts say that given the situation, smaller yards would find it extremely difficult to pull through the tough times without enough orders.
Read More

No comments: