Cosco Shipping unveiled its consolidated shipbuilding arm, named Cosco Shipping Heavy Industry.
The new Cosco Shipping Heavy Industry combines the shipbuilding entities of Cosco Shipyard and Cosco Shipbuilding Industry Company, previously under China Cosco Group, and China Shipping Industry Co previously under China Shipping Group.
Cosco Shipyard, Cosco Shipbuilding Industry Company and China Shipping Industry Co have a combined shipbuilding capacity of 11.55m dwt.
Cosco Shipping Heavy Industry aims to shrink down its shipbuilding capacity to 10.6m dwt by end-2017 and to 9.6m dwt by end-2020.
Cosco Shipping will use the old China Cosco Group’s subsidiary Cosco Shipbuilding Industry Company as a restructuring platform and transfer all shipbuilding and ship repair assets into the platform. Cosco Shipyard will also close down some ship repair docks and reduce capacity at its Shanghai facility.
The China Shipping Industry’s Jiangsu yard will be shut down.