China overtakes Japan

China has overtaken Japan to become the world’s second-biggest shipbuilding country in terms of orders according to a Hong-Kong based source. China received orders totaling 7 million cgt (compensated gross tonnes) last year, compared with Japan’s 6.2 million cgt.

South Korea continued to be the biggest, after securing orders amounting to 14.5 million cgt last year although this figure is down from 16.9 million in 2004. Despite this decline in order intake, Korea plans to increase its investment in the shipbuilding industry to the tune of about $1.3 billion by expanding docks, upgrading automatic system and developing scientific technology. The investment in this sector, up 4% from last year, is claimed to be the biggest since 1997.

To compete with the growing Chinese shipbuilders, the Korean yards South are moving their focus to LNG carriers and other high-tech ships which have added value and generate higher profit margins for shipbuilders. Chinese shipyards built 12 million deadweight tonnes of ships last year, retaining the third position in the global league table and narrowing the gap with the top two, South Korea and Japan.