China set to become world's largest shipbuilding country

16:52, November 10, 2009      

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According to Chosun Ilbo, South Korea's shipbuilding industry is suffering from insufficient orders due to the serious financial crisis, and China will replace South Korea as the world's largest shipbuilding country.

China's shipbuilding has overtaken South Korea's in terms of order volume already received and new orders. According to statistical results released by Clarkson, the research institute that analyze the global shipbuilding and maritime transport sector, as of early this month, China's shipbuilding orders reached 54.96 million Compensated Gross Ton (CGT), 34.7% of the world market share, while the South Korean shipbuilding industry holds orders of 53.63 million CGT and only 33.8% of the world's market share. China's market share is 0.9 percentage points higher than South Korea's.

From January to October, China's new orders amounted to 2.71 million CGT, and the market share reaches as high as 52.3%, while new orders in South Korea totals only 1.64 million CGT with 31.8% global market share. This means that China has exceeded South Korea in orders received and new orders and becomes the world's largest shipbuilding country. It is understood that South Korea's shipbuilding industry surpassed Japan in 2000. In the following 10 years, South Korea has been the world's largest ship builder.

Industry insiders in South Korea believe that while South Korean shipbuilding orders are shrinking, at the same time, China has won orders for low-cost shipbuilding. Main products of South Korea's shipbuilding are very large oil tankers, liquefied natural gas (LNG) ships and other high value-added ships. Korea Evaluation Institute of Industrial Technology (KEIT) has warned that localization rate of South Korea's core technology of high value-added ships is low. If South Korea does not improve this rapidly, it will be difficult to remain competitive.

By People's Daily Online
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