Ninety percent of the orders came from overseas shipbuilding in shandong, showing a pattern of "two ends out"

In recent years, with daewoo shipbuilding and other foreign companies have seized the market in shandong, shandong shipbuilding industry has achieved rapid growth. However, according to information released by the shandong provincial office of science, technology and industry for national defense, the province's shipbuilding enterprises have received 62 new orders of 980,000 deadweight tons so far this year, up 383 percent year on year, with more than 90 percent of the orders coming from overseas.
According to relevant data, there are currently 366 shipbuilding and supporting enterprises in shandong province, including 90 enterprises above scale. So far this year, beihai shipbuilding industry co., LTD., huanghai shipbuilding, yantai raffles, weihai shipyard, bohai shipbuilding and other five key shipping enterprises have undertaken orders of 960,000 deadweight tons, accounting for 98.37% of the total volume of shandong province. Among them, beihai shipbuilding industry received 750,000 deadweight tons, accounting for 76.58% of the total, ranking the first in shandong province.
At the same time that the market is controlled by foreign capital, there are data reality, our country shipbuilding equipment also generally rely on imports. Statistics from the commission of science, technology and industry for national defense show that in 2006, shipbuilding and ship repairing enterprises above the designated size in China earned 156 billion yuan from their main business, while the total profit was 9.6 billion yuan.
Industry experts believe that the key factor of low profits is the over-dependence on imports of auxiliary equipment, which has become the biggest obstacle to improving the profits of China's shipbuilding industry.
According to the China shipbuilding association, the localization rate of key components in China's shipbuilding industry is less than 40%, and more than 60% must be imported. In Japan, the local matching rate is 98 percent, and in South Korea, more than 90 percent. More than 80% of China's ten thousand ton ships purchase foreign diesel engines.
The competition pattern of "both ends are outside" also shows that shandong shipbuilding shows that there are huge hidden worries behind the prosperity. It is understood that the current contract of major shipyards in shandong province has been scheduled to 2010. However, to complete these orders, shandong enterprises still face four challenges: first, the three new standards put forward higher requirements for shipbuilding capacity and management level, shandong enterprises still have some problems in process design and management; Secondly, due to the shortage of ship design and skilled workers, some shipyards may not deliver the ship on time. Third, the rising prices of diesel engines and deck machinery increased the cost of shipbuilding, while the wages of ordinary workers also increased by 10% per year. Fourth, the appreciation of RMB brings adverse impact on ship export, and the ability of enterprises to resist exchange rate risks needs to be strengthened urgently.

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