Market Research Report : Shipbuilding Industry in China 2010


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The shipbuilding market in China has been steadily growing and is expected to show strong growth with the ending of the recessionary period leading to renewed large scale international trade. China is the second largest player in the global shipbuilding industry, led by South Korea. The market had been impacted by the prevalent economic scenario. Major government initiatives have been implemented towards cushioning the market from the recession and allowing it to grow further. Chinese ships have been the preferred choice due to the cost advantages that the buyers face. It is estimated that China will be the market leader by 2015.

The report begins with an introduction to the global shipbuilding market which includes current and expected growth in installed capacity and the share of backlog for major countries in this space. An overview of China’s shipbuilding market has been provided including current and estimated figures for installed capacity, its global share in vessel production and existing segmentation in sales.

The characteristics of the market have been analyzed and include – growing trade levels, growth in LNG transport vessels, global economic downturn affecting demand, overcapacity in the shipping market and price of steel impacting the market. The major government programmes and investments towards the development of the industry have been discussed including the adjustment and revitalization plan of Chinese shipping industry, financial assistance to restructure the industry, tax relief and other initiatives.

Competition section profiles the major players in the market. The section contains a snapshot of the corporations’ financial performance and business highlights, providing an insight into the existing competitive scenario.

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Market Research Report : Shipbuilding Industry in China 2010

  1. 1. Shipbuilding - China January 2010
  2. 2. Executive Summary SAMPLE Market Market Characteristics Government Initiatives Competition <ul><ul><li>China ranks A in the global shipbuilding market, led by Country 2 (Nov ’--) </li></ul></ul><ul><ul><ul><li>Completed orders of XX mn dead weight tonnes </li></ul></ul></ul><ul><ul><ul><li>New shipbuilding orders totaled YY mn dwt—accounting for a% orders received worldwide </li></ul></ul></ul><ul><ul><li>China’s global share in vessel production stood at b% in 20- -; Estimated to reach c% by 20- - </li></ul></ul><ul><ul><li>Adjustment and revitalization plan of Chinese shipping industry </li></ul></ul><ul><ul><li>Financial assistance to restructure the industry </li></ul></ul><ul><ul><li>Tax relief </li></ul></ul><ul><ul><li>Other initiatives </li></ul></ul><ul><ul><li>The market comprises of a large number of domestic players </li></ul></ul><ul><ul><li>Large fraction of players are part of the ZZ, a conglomerate and state-authorized investment institution directly administered by the central government </li></ul></ul><ul><ul><li>Growing trade levels </li></ul></ul><ul><ul><li>Growth in LNG transport vessels </li></ul></ul><ul><ul><li>Global economic downturn affecting demand </li></ul></ul><ul><ul><li>Overcapacity in the shipping market </li></ul></ul><ul><ul><li>Price of steel to impact the market </li></ul></ul>Company 4 Company 3 Company 2 Company 1   Major Players
  3. 3. <ul><li>Introduction </li></ul><ul><li>Market Overview </li></ul><ul><li>Market Characteristics </li></ul><ul><li>Government Initiatives </li></ul><ul><li>Competition </li></ul><ul><li>Key Developments </li></ul>
  4. 4. Chinese shipbuilding industry has grown at an overwhelming pace to dominate the global top ranks <ul><li>As of Nov 20--, China ranks second in the global shipbuilding market </li></ul><ul><ul><li>Completed orders of YY mn dead weight tonnes (dwt), u% of the global market </li></ul></ul><ul><ul><li>New shipbuilding orders totaled ZZ mn dwt; accounting for v% orders received worldwide </li></ul></ul><ul><li>Government initiatives and domestic demand has allowed the market to develop </li></ul>SAMPLE Overview Installed Capacity China’s Global Share in Vessel Production Source: d 2004 e 2006 f 2008 g 2012e Market share (%) China is paving its way to the number one spot in shipbuilding Sales Distribution c1 2003 c2 2004 c3 2005 c4 2006 c5 2007 c6 2008 c7 2009e c8 2010e c9 2011e a% mn dwt b% Market 1 c% Market 2 Major importers are Country 1, Country 2 and Country 3
  5. 5. Government Initiatives Key Initiatives Financial Assistance to Restructure the Industry Tax Relief Adjustment and Revitalization Plan of Chinese Shipping Industry Other Initiatives
  6. 6. Market Characteristics - Summary Growing trade levels Overcapacity in the shipping market Global economic downturn affecting demand Growth in LNG transport vessels Price of steel to impact the market Key Initiatives
  7. 7. Players in the Market (2/7) SAMPLE <ul><li>It is building U 1,400-seat/2,000-meter-fare roll on/roll off passenger ships for Company V expected to be delivered between 20- - -20- - </li></ul><ul><li>It is planning to apply to financial institutes for funding of USD W mn via credit loans, assets backed mortgaged loans, etc. </li></ul><ul><li>In 20- -, the company completed P ships (totaled Q dwt); by the end of 20--, the firm pooled orders of R ships and S new orders in 20- -, ample for its production units till 20- - </li></ul><ul><li>Operations carried out in Country 1, Country 2, Country 3, Country 4, Country5, Country 6 and Country 7 </li></ul>Source: Press Articles; Company Website Company Snapshot: Company 2 Business Highlights Corporate Information Financial Performance R1 2005 R2 2006 R3 2007 R4 2008 Revenue Profit / Loss Revenue USD mn Profit USD mn Headquarters Location 2 Founded 19-- Area of Expertise Shipbuilding, steel structure engineering, and manufacturing other mechanical and electrical equipment Key People Person 1 – Chairman Person 2 – CEO
  8. 8. Thank you for the attention About Netscribes Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfil clients’ profitability and growth objectives. The Shipbuilding - China report is a part of Netscribes’ Manufacturing Industry Series. For more detailed information or customized research requirements please contact: Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India, Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction. Natasha Mehta, CFA Phone: +65 8448 0449 E-Mail: [email_address] Gagan Uppal Phone: +91 98364 71499 E-Mail: [email_address]