Thursday, May 14, 2009
Five years needed for Chinese ship industry resuscitation
Thursday, 14 May 2009
According to Mr Xu Xingyue analyst of Great Wall Securities "Ship industry hasn't landed the bottom, and the industrial resuscitation might need at least five years. The real recovery in ship industry is likely to come after global economy's reviving "
Mr Xu said "The close connection with global economy curses China's ship industry when the economy falls into winter. On one hand, upstream shipping market keeps dead alive due to cold world economy and shrunk international trades, on the other hand, China's ship orders mainly come from outside though domestic economy turns to be better recently."
Mr Liang Zhiyong senior analyst of China Ship Industrial & Economical Research Center expressed its worry to China Industrial & Economic News said that "There are scarce new ship orders in China's ship industry and most shipbuilders hasn't got one for nearly half a year."
Mr Liang points out that the hardest time for ship industry will be in the following years, since the influence from global financial crisis will be lagged by the 2 to 3 year production cycle in shipbuilding. Most of the orders held by China's shipbuilders are required to deliver to their owners in 2010 or 2011 and then the industry will meet its tough time, since new ship orders are rare.
Mr Liang notes the most important bailout what shipbuilders ask for is fund, because the majority of them are facing difficulties in financing. He said that the great depression always hides behind the big bloom, but it still brings in opportunities. China's ship industry should catch the chance to build up modern shipbuilding modes and pick up technology innovation in order to shorten the difference with Korean ship industry."
Source: China Industrial & Economic News
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