China knocks shipbuilding into shape

China will implement its first ever market access regulations for shipbuilding manufacturers from 1 October in order to prevent production of low-quality vessels.

Jin Zhuanglong, vice minister of the Commission of Science, Technology and Industry for National Defence, said the shipbuilding sector, which had grown rapidly in recent years, urgently needed order and organization. In 2006, the country’s shipbuilding manufacturers yielded output of 14.52 billion DWT, captured 42.51 billion DWT of new orders and had a total of 68.72 billion DWT on their order books, accounting, respectively, for 19%, 30% and 24% of the global market.

However, commission statistics show that of the nearly 3,000 shipbuilding enterprises in the country, only 431 are large ones. Booming market demand has boosted the growth of medium- and small-sized firms and the absence of market regulations has meant that a number of firms with poor facilities and poor management have emerged. The commission has closed 457 shipbuilding factories or workshops since 2005 in an effort to crack down on low-standard manufacturers.

The long-term aim of the new regulations is to improve management in shipbuilding firms in the country and improve the quality of vessels produced. The regulations set out detailed requirements in terms of production facilities, staff and management, according to a commission official Ma Hengru. The regulations, which classify civil shipbuilding enterprises into six major categories and 29 different types, define “threshold” requirements for each type of enterprise while giving them room to grow, Ma said.