CSSC seeks Japanese allies

China State Shipbuilding Corporation (CSSC), China?s largest shipbuilding group, is seeking further exchanges and co-operation with Japanese shipbuilders to meet the growing demand for newbuildings from foreign and domestic shipping companies.

Speaking at the biennial Sea Japan International Maritime Exhibition and Conference, CSSC president Chen Xiaojin said “Known as one of the shipbuilding powers in the world, Japan still possesses rather strong potentiality in the field of shipbuilding technology and labour efficiency. To learn the strong points from the Japanese shipbuilders and strengthen co-operation with them should be a common objective of all Chinese shipbuilders.”

Chen said that Chinese yards are reporting a surge in demand for new building orders, although he voiced concerns over how China would meet the growing demand. CSSC accounted for about one-third of China’s shipbuilding output in 2003 of six million deadweight tonnes. Wang Yiku, a senior company official, said. “Our most outstanding advantage is the relative lower cost, but rising prices of materials like steel are shedding profit margins.” Chen said that the prime objective of Chinese shipbuilders was to satisfy the demand for new ships from domestic shipping companies who are currently placing orders with foreign shipyards. A number of CSSC subsidiaries are already co-operating with some Japanese shipbuilders including Mitsubishi Heavy Industries and Mitsui Engineering and Shipbuilding. In addition, CSSC is also seeking co-operation from other foreign shipyards to develop shipbuilding in Shanghai and Guangzhou.