Thursday, March 19, 2009

China postpones shipbuilding development

The Chinese government has announced that the construction of new docks and the expansion of slipways would be suspended for three years.

China is hoping to facilitate the restructuring of the industry while coping with economic slowdown. Other steps that have been adopted include financial aid for shipyards when exporting vessels, and extending tax break deadlines for builders selling ships to Chinese shipping companies until 2012. The total volume of shipbuilding in China saw a massive increase of 52.2 percent to 28.81 million tonnes from 2007 to 2008 while building costs were lowered by nearly ten times compared with 2000. Orders received in 2008 however fell by 41 percent to 58.18 million tonnes compared with 2007.
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