The China State Shipbuilding Corporation (CSSC) and the China Shipbuilding Industry Corporation (CSIC), the two largest such conglomerates in the country, are reportedly in the initial phases of combining units in order to beef up the national shipbuilding industry, according to the 21st Century Business Herald on Thursday.

Experts from CSSC suggest the merger would help strengthen each enterprise and offset each of the company's individual weaknesses, the newspaper said, citing a source from China Ship News speaking on Jan. 20, 2015.

However, when it comes to specific details, no definite terms of agreement for the potential merger are available, while the press spokesman for CSIC Liu Zhengguo has declined to comment on the matter.

The two corporations were divided from their parent company according to geographical locations in July, 1999. The one to the north of the Yangtze River is CSIC, and the one to the south is CSSC.

An industry expert said this division might have resulted in various shortcomings, which make it harder for both companies to enhance product producing capabilities.

Another expert said, "CSSC has strong scientific research abilities, strength in design and diversified products." Combining the two firms could make it possible for both to develop multi-functional maritime engineering businesses and cope with periodic industry pressure amid overall industrial downturn.

However, amalgamation difficulties are still obvious due to each company's large operating systems and complexities regarding the process of dividing business and interests, it was added.