China is considering a plan to merge the two biggest shipbuilders of the country, China State Shipbuilding Corp. with China Shipbuilding Industry Corp. in an attempt to surpass South Korea.
As Bloomberg reported, China preliminary approved the merge of China State Shipbuilding Corp. and China Shipbuilding Industry Corp.
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This move is indicative of China’s attempt to surpass its South Korean rivals such as Hyundai Heavy Industries Co, but there is still possibility that it is still subject to change as many details need to be addressed.
The two parties have many shipyards across China, and their products vary, from ships carrying oil and gas, to aircraft carriers.
The two companies said that they have not been officially informed by the government for such a development, and they do not have something to state. Furthermore, China Shipbuilding Industry Corp. said that they have not discussed with China State Shipbuilding Corp., about this matter.
If the merger is completed after all, its revenue will be twice than South Korea’s Hyundai Heavy Industries, Daewoo Shipbuilding & Marine and Samsung Heavy Industries, Bloomberg reported.
