Background
CSSC is one of the top 10 defence groups in China. [2] It consists of various shipyards,equipment manufacturers,research institutes and shipbuilding-related companies that build both civilian and military ships. It owns some of the most well known shipbuilders in China,such as Dalian Shipbuilding Industry Company,Jiangnan Shipyard,Hudong–Zhonghua Shipbuilding,Guangzhou Huangpu Shipbuilding [3] and Guangzhou Wenchong Shipyard. [4] Its subsidiary,China CSSC Holdings Limited (SSE : 600150),is listed on the Shanghai Stock Exchange,and in turn owns other subsidiaries including Shanghai Waigaoqiao Shipbuilding. [5] As of 2024,CSSC builds a third of all ships in the world,making it the world's biggest shipbuilding conglomerate. [6] [7] All CSSC ships are built to military specifications,according to Chinese government doctrine. [6]
History
Early developments
In 1964,the Sixth Ministry of Machine Building was created [8] to oversee China's shipbuilding enterprises,which were predominantly engaged in military work. [9] In July 1982, [10] as part of defence industry reforms and "defence conversions",the ministry was converted into the China State Shipbuilding Corporation. [9] CSSC remained under state control but was permitted to operate with "a degree of market-based economic autonomy". [11] CSSC shifted the industry's focus to commercial work;by 1992,80% of output was to the civilian sector, [10] and in 1993 half of the commercial output was for export. [12]
Spinning off CSIC
In the late 1990s,economic reforms broke up state-owned monopolies and introduced "a limited amount of free-market competition" to improve the efficiency of defence industries. [13] [14] In July 1999,the China Shipbuilding Industry Corporation (CSIC) was spun off from CSSC. [14] The shipbuilding industry was divided roughly along geographical lines:CSSC retained assets in the east and south, [15] and CSIC gained control in the northeast and inland. [16] Both reported to the State-owned Assets Supervision and Administration Commission (SASAC). [17] CSSC emerged as the smaller entity. [15] [18] Enterprises not affiliated with either conglomerate included shipyards owned by the People's Liberation Army (PLA),provinces,municipalities,foreign joint ventures,and Chinese shipping companies. [17] [19]
Merging with CSIC
Preparations for merging CSIC and CSSC date back to at least 2010,when Hu Wenming became CSSC's party secretary,in anticipation of an industry decline. [20] Hu was a strong supporter of the merger;he was CSSC chairman from 2012 to 2015,and then CSIC chairman from March 2015 until his retirement in August 2019 because of corruption. [21] The decision to merge the conglomerates may have influenced not only by a slowing economy, [22] but also the discovery of widespread corruption in CSIC and Hu's involvement in it. [21] [22] [23]
The CSIC and CSSC merger was approved by SASAC in October 2019, [24] [25] and occurred in November 2019;the combined entity took the CSSC name. The reorganization was complete by September 2020. The new entity was the world's largest shipbuilder with 20% global market share and US$110 billion in assets. [22]
This page is based on this
Wikipedia article Text is available under the
CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.
