Increasing Production of Gas Carriers and Cruise Ships with Incline in the Number of Naval Vessels will Provide Impetus

1. Increasing Production of Gas Carriers and Cruise Ships with Incline in the Number of Naval Vessels will Provide Impetus to Chinese Shipbuilding Industry: Ken Research

2. China News • Chinese Shipbuilding Industry is expected to be led by the naval shipbuilding, production of LPG/LNG carriers and cruise ships. Also the country is planning to increase its international trade through its ONE BELT, ONE ROAD initiative which is expected to lead the country’s waning shipbuilding industry. • The leading players in China Shipbuilding Industry are China Shipbuilding Industry Corporation, China State Shipbuilding Corporation, CIMC Raffles Offshore Co. Ltd., COSCO Corporation and China Merchants Industry Holdings Co. Ltd. Chinese Shipbuilding companies should invest more in facilities producing high-technology vessels, offshore oil and gas platforms, polar navigating and environment friendly ships.

3. The China Shipbuilding Industry had witnessed a declining phase over the period FY’2010-FY’2015. The market exhibited a negative CAGR during the period FY’2010-FY’2015 in terms of revenue. The large and high-end vessels, changes in the structure of the type of ships, modernization of the industry and the mergers and acquisitions are the major factors which had helped the market players to sustain in the declining China Shipbuilding Industry. Also, the increase in challenges faced by the companies in generating cash flows, in making timely deliveries, in attracting the young and innovative maritime professionals and the ageing workforce have posed a challenge to the China Shipbuilding Industry. • The China shipbuilding industry had also witnessed over the past few years that the customers are shifting their preference from not only new ship manufacturing but towards ship-repairing too. This had increase the share of ship repair segment in China Shipbuilding Industry. The increase was made possible due to the improvement in technology for ship repair in China, evident from the fact that the number of ships repaired came down in 2014, but the revenue still increased.

4. The largest revenue generating sector of the market is Bulk carriers sector in overall revenues of China Shipbuilding Industry. In China, the massive growth in the number of naval vessels and the increasing trade relations with the untapped markets had majorly generated revenue for the shipbuilding industry. China has been moving towards increasing anti-surface warfare equipments and plans to increase its destroyers, frigates and submarines as per the US navy. Frigates such as the TYPE-054A are evident of the plan. According to the research report, the China Shipbuilding Industry will record revenue of USD 9.2 Billion by 2020 due to consolidation within the industry, huge number of shutdowns, large number of order cancellations due to the delayed deliveries and unpaid debts, overcapacity in the industrial units, no expectations of any rebound in the commodity prices and the weakening of RMB against USD. Chinese military expansion is expected to compensate for the downturn in the commercial shipbuilding industry. Cruise Ship manufacturing is also the segment which can bring good times for the industry.

5. China has the potential to become the world’s largest cruise market. Increasing upper middle class group of China is flocking to luxury vacation cruises. Tapping such a market at a stage when most of the other segments are losing their sheen will finally turn out to be a great advantage for the China shipbuilding industry. • It has been recommended that “Subsidies by the Chinese government should not be removed in one go rather the subsidies should be conditional. For instance, subsidies or the cost saved should be spent on the technology upgradation in the company or on the growth of human capital. China should keep in mind the experience of European shipbuilders in the 1980s when massive “unconditional” government subsidies failed to revive a dying shipbuilding industry. Also the government has to be fair in its approach to reward the achievements of private players which are distinct and outperforming.”, according to the Research Analyst, Ken Research.

6. The latest publicationon “China Shipbuilding Industry Outlook to 2020 - Concentration on Gas Carriers and Cruise Ships to Stimulate China Shipbuilding Industry” provides a comprehensive analysis of China Shipbuilding Industry. The report focuses on the new shipbuilding and ship-repair industry in China. The report covers market size and segmentation of overall China Shipbuilding industry by type of ships delivered, by regional manufacturing clusters, by ownership, by customer base, by new orders and repairs. The report covers the market share and detailed company profile of leading players and the failed players. The potential and future outlook for China Shipbuilding Industry has also been discussed in the publication. The report provides detailed analysis of major players, their strategies, SWOT Analysis, Trends & Developments and major issues and challenges with the China Shipbuilding Industry. The report also serves as a benchmark for existing players and every new player who wish to capitalize the market potential and investors who are looking forward to venture into the China Shipbuilding Industry.

7. Key Topics Covered in the Report: • China Shipbuilding Industry Introduction and Size • Value Chain Analysis of China shipbuilding Industry • China Shipbuilding Industry Segmentation • By Type of Ships ( Gas carriers, Bulk carriers, Dry cargo, Tanker, Container, Passenger and others) • By New Ship and Repair Services. • By Regional Manufacturing Clusters • By Ownership • Military Shipbuilding Industry in China Shipbuilding Industry • Growth Drivers and Trends in China Shipbuilding Industry • Customer Base for China Shipbuilding Industry • Ship-Repair Industry Market Size by Revenues and Number of Ships Repaired in China • Ship-Repair Market Segmentation by Type of Repair Work in China

8. Market Share of Major Players in China Shipbuilding Industry • Company Profile of Leading and Failed Players in China Shipbuilding Industry • SWOT Analysis of China Shipbuilding Industry • China Shipbuilding Industry Future Outlook and Projections • Cost Analysis for Manufacturing of Ships in China Shipbuilding Industry • Analyst Recommendation • Macro Economic Variables Impacting the China Shipbuilding Industry Key Product Mentioned in the Report • Gas Carriers • Bulk Carriers • Dry Cargo Ships • Tanker Ships • Container Ships • Passenger Ships

9. Companies Covered in the Report • China Shipbuilding Industry Corporation • China State Shipbuilding Corporation • CIMC Raffles Offshore Co. Ltd. • COSCO Corporation • China Merchants Industry Holdings For more information on the report, refer to the below link: https://www.kenresearch.com/manufacturing-and-construction/infrastructure/china-shipbuilding-market-statistics/42910-97.html

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