Li Dong: The shipbuilding industry will strictly control the incremental optimization of product structure

“Compared with other industries, the overcapacity of the shipbuilding industry has global, cyclical and structural characteristics.” According to Li Dong, deputy director of the Equipment Industry Department of the Ministry of Industry and Information Technology, the current global shipbuilding capacity is around 200 million DWT. In 2012, the global new ship orders were only 46.68 million DWT, and the new ship orders from January to September this year were 83.96 million DWT. Experts predict that the average annual global shipbuilding demand will be between 70 million and 90 million DWT in the next three years, and the global overcapacity will exceed 50%. Shipbuilding companies are generally faced with insufficient orders.
The overcapacity of China's shipbuilding industry is mainly caused by the high prosperity of the ship market since the 11th Five-Year Plan. At the same time of the excess amount, there are structural overcapacity characteristics, low level, homogenized production capacity and lack of high-end production capacity. In 2012, orders for high-end ships and offshore engineering equipment accounted for more than 60% of the total; 33 LNG carriers were sold globally, and China only accepted 4 vessels. The international market share of China's offshore engineering equipment is only 14%.
Li Dong said that the shipbuilding industry will make good use of the current opportunity period that is conducive to structural adjustment, through strict control of increments, increase mergers and acquisitions, guide the transfer of some production capacity to the offshore equipment sector, optimize product structure, and establish backward production capacity withdrawal mechanisms and Support measures such as the development of key backbone enterprises to resolve the contradiction of overcapacity in the shipbuilding industry.
During the booming period of the ship market, a large number of speculative mid-ship boats were produced along the coast and the Yangtze River. At present, most of them are in a state of production suspension and semi-discontinuation. Li Dong said that the Ministry of Industry and Information Technology and other relevant departments will adopt financial, taxation and other restrictions to guide enterprises with low technical level, poor product competitiveness and long-term suspension of production to withdraw from the shipbuilding industry. Li Dong also revealed that the Ministry of Industry and Information Technology is formulating the "Standard Conditions for the Shipbuilding Industry", which will regulate the shipbuilding enterprises from the aspects of production conditions, quality management, technology research and development, energy conservation and environmental protection, safety management, etc., support the development of excellent and strong enterprises, and accelerate the elimination of backward production capacity. .

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