Archive for ‘military vessels’

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26/10/2019

Merger of China’s shipbuilding giants gets the green light

  • After nearly 10 years of planning, the country’s two shipbuilders will be reunited with a combined revenue of US$141.5 billion
China’s two shipbuilding giants have built hundreds of military vessels over the past few years as the country’s navy seeks to modernise rapidly. Photo: Xinhua
China’s two shipbuilding giants have built hundreds of military vessels over the past few years as the country’s navy seeks to modernise rapidly. Photo: Xinhua

China on Friday announced the merger of the country’s two largest state-owned shipbuilding giants, a step Beijing has been preparing for nearly a decade to strengthen the competitiveness of its shipbuilding industry.

The intention to merge the Shanghai-based China State Shipbuilding Corp (CSSC) and the China Shipbuilding Industry Co (CSIC), based in Dalian, Northern Liaoning province, was announced in a statement on the website of the state-owned Assets Supervision and Administration Commission of the State Council, China’s cabinet.

The merger would enable China to establish a shipbuilding giant with a combined revenue up to 1 trillion yuan (US$141.5 billion), capable of building vessels ranging from warships, like aircraft carriers, to civilian ships such as container ships and oil tankers, said a source familiar with the merger plan.

“This merger has been in the making since Hu Wenming, a former party leader of the state-owned aviation industry, was assigned to CSSC as party secretary in 2010,” the source said, requesting anonymity because of the sensitivity of the issue.

“The merger plan was put on the drawing board at a time when the world shipping industry had entered a golden period in 2009, and the business of CSSC and CSIC was at its peak, but [China’s] analysis indicated a decline was on the horizon, as has actually happened in recent years.”
Chinese shipbuilder touts warships in push to expand arms sales in region

CSIC and CSSC were part of the same group until 1999 when they were split into two separate entities. Since then, China has overtaken South Korea and Japan to become the world’s largest builder of merchant ships, a rise spurred by the boom in world trade and the country’s accession to the World Trade Organisation in 2001.

CSSC manages shipbuilding business in the east and south of China, while CSIC oversees activities in the northern and western parts of the country. Both are also primary contractors for PLA naval ships.

Commercial shipbuilding was the major source of revenue for both enterprises, given they were generally less technologically challenging and of lower cost to build, the source said.

“Developing and building warships for the PLA needs more manpower and more advanced technologies because naval ships, which are built for sea battles, take longer to build and require cutting-edge technologies, hence the higher costs,” the source said.

China tests new warships in live-fire drills near Vietnam
CSSC and CSIC have built hundreds of military vessels over the past few years as the Chinese navy seeks to modernise rapidly. These have included aircraft carriers, Type 055 destroyers, Type 075 amphibious assault ships and Type 094A nuclear submarines.
But, the source said, the two giants’ naval warship building mission would be cut back next year, as Beijing expected greater financial pressure as a result of slower economic growth. The merger would allow the two companies to pool their resources and enhance their competitiveness, especially in the development of mega vessels.
But the source said the two giants’ naval warships building missions would be cut back beginning next year as Beijing foresees greater financial pressure as a result of slower economic growth. The merger will allow the two companies to pool their resources and enhance their competitiveness, especially in areas of mega vessels.
“The merger is also part of China’s long-term maritime energy development plan to meet President Xi Jinping’s sustainable and clean energy goal, because China needs more giant vessels to help ship oil and gas from other countries,” the source said.
Source: SCMP

Posted in aircraft carriers, Assets Supervision and Administration Commission, Beijing, China Shipbuilding Industry Co (CSIC), China State Shipbuilding Corp (CSSC), China’s, China’s cabinet, Chinese State Council, civilian ships, competitiveness, container ships, Dalian, giants, green light, industry, Japan, Liaoning province, merchant ships, Merger, military vessels, oil tankers, PLA naval ships, Shanghai, shipbuilding, shipbuilding giants, South Korea, Uncategorized, Vietnam, warships, World Trade Organisation (WTO) | Leave a Comment »

24/08/2019

Chinese ship inches closer to Vietnam coastline amid South China Sea tensions

HANOI (Reuters) – A Chinese survey vessel on Saturday extended its activities to an area closer to Vietnam’s coastline, ship tracking data showed, after the United States and Australia expressed concern about China’s actions in the disputed waterways.

The Haiyang Dizhi 8 vessel first entered Vietnam’s exclusive economic zone (EEZ) early last month where it began a weeks-long seismic survey, triggering a tense standoff between military and coastguard vessels from Vietnam and China.

The Chinese vessel continued to survey Vietnam’s EEZ on Saturday under escort from at least four ships and was around 102 kilometres (63 miles) southeast of Vietnam’s Phu Quy island and 185 kilometres (115 miles) from the beaches of the southern city of Phan Thiet, according to data from Marine Traffic, a website that tracks vessel movements.

The Chinese vessel group was followed by at least two Vietnamese naval vessels, according to the data.

Vietnam’s foreign ministry did not immediately respond to a request from Reuters for comment.

A country’s EEZ typically extends up to 200 nautical miles (370 kilometres or 230 miles) from its coastline, according to an international UN treaty. That country has sovereign rights to exploit any natural resources within that area, according to the agreement.

Vietnam and China have for years been embroiled in a dispute over the potentially energy-rich stretch of waters and a busy shipping lane in the South China Sea.

China’s unilaterally declared “nine-dash line” marks a vast, U-shaped, expanse of the South China Sea that it claims, including large swathes of Vietnam’s continental shelf where it has awarded oil concessions.

On Friday, Vietnamese Prime Minister Nguyen Xuan Phuc and his Australian counterpart expressed their concern about China’s activities in the South China Sea, known in Vietnam as the East Sea.

Earlier in the week, the United States said it was deeply concerned about China’s interference in oil and gas activities in waters claimed by Vietnam, and that the deployment of the vessels was “an escalation by Beijing in its efforts to intimidate other claimants out of developing resources in the South China Sea”

Chinese Foreign Ministry spokesman Geng Shuang, in response to the U.S. statement, said Washington was “sowing division and had ulterior motives”.

“The aim is to bring chaos to the situation in the South China Sea and damage regional peace and stability. China is resolutely opposed to this,” Geng told a daily news briefing on Friday.

Source: Reuters

Posted in Australia, Beijing, China alert, Chinese ship, coastguard vessels, East Sea, exclusive economic zone (EEZ), Haiyang Dizhi 8, inches closer, international UN treaty, Marine Traffic, military vessels, Nguyen Xuan Phuc, Phan Thiet, Phu Quy island, seismic survey, South China Sea, standoff, survey vessel, tensions, triggering, Uncategorized, United States, Vietnam, Vietnam coastline, Vietnamese Prime Minister, Washington | Leave a Comment »

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