Issuing agency: China Association of the National Shipbuilding Industry
Column: run analysis
source: https://www.cansi.org.cn/cms/document/10210.html
2013 is an important year for China's shipbuilding industry to continue to withstand the difficult test of the international financial crisis and cope with the challenges of new international shipping regulations. It is also the year to comprehensively implement structural adjustment, transformation and upgrading, and resolve the contradictions of overcapacity. With the care of governments at all levels, the shipbuilding industry faces the crisis, strengthens confidence, invigorates the spirit, conscientiously implements the laws and regulations promulgated by the country, strives to solve contradictions and difficulties in economic operations, improves the quality of economic operations, receives new shipbuilding and offshore engineering orders, and strengthens scientific and technological research and development. New achievements, new progress, and new breakthroughs have been achieved in promoting structural adjustment and upgrading, optimizing the allocation of production capacity resources, and trying to innovate financial services. Overall, the shipbuilding industry has maintained a stable and healthy development. However, due to the deep impact of the international financial crisis, problems such as difficulty in ship delivery, difficulty in profitability, and difficulty in financing still exist, and the main economic indicators of the entire industry are still declining to varying degrees.
In 2013, the country's shipbuilding completed 45.34 million deadweight tons, a year-on-year decrease of 24.7%; new ship orders were 69.84 million deadweight tons, a year-on-year increase of 242%; as of the end of December, the number of ship orders in hand was 131 million deadweight tons, a year-on-year increase of 22.5%.
The number of completed export ships nationwide was 35.73 million deadweight tons, a year-on-year decrease of 27.9%; the number of export ship orders received was 64.74 million deadweight tons, a year-on-year increase of 333%; as of the end of December, the number of export ship orders in hand was 115.41 million deadweight tons, a year-on-year increase of 30.5%. Export ships accounted for 78.8% of the national shipbuilding completions, new orders, and held orders respectively. 92.7% and 88.1%.
From January to November 2013, there were 1,664 large-scale shipbuilding industry enterprises nationwide, achieving main business income of 600.1 billion yuan, a year-on-year decrease of 3.6%. Among them, shipbuilding companies were 407.1 billion yuan, a year-on-year decrease of 6.2%; ship supporting companies were 93.2 billion yuan, a year-on-year decrease of 2.1%; ship repair companies were 22.5 billion yuan, a year-on-year increase of 11.4%.
The total profits of shipbuilding industry enterprises above designated size were 25.2 billion yuan, a year-on-year decrease of 13.1%. Among them, shipbuilding enterprises were 17.1 billion yuan, a year-on-year decrease of 18.3%; ship supporting enterprises were 4.72 billion yuan, a year-on-year increase of 7.8%; ship repair enterprises were 420 million yuan, a year-on-year increase of 13.1%.
From January to November 2013, my country's ship exports were US$26.74 billion, down 26.9% year-on-year. Among my country's exports of ship products, bulk carriers, oil tankers and container ships still dominated, with a total export value of US$18.23 billion, accounting for 68.2% of total exports. my country's ship products were exported to 186 countries and regions, of which US$16.36 billion was exported to Asia. The proportion is 61.2%.
In 2013, the State Council promulgated the "Implementation Plan for Accelerating Structural Adjustment and Promoting Transformation and Upgrading of the Shipbuilding Industry (2013~2015)" (Guofa [2013] No. 29). In view of the current situation and existing contradictions faced by the shipbuilding industry, it grasped the key and core issues of structural adjustment, transformation and upgrading, and proposed main tasks and policy measures; it also issued the "Guiding Opinions on Resolving the Conflict of Serious Overcapacity" (Guofa [2013] No. 41), clearly pointed out that resolving serious overcapacity is the focus of promoting industrial structural adjustment at present and in the future. Twelve ministries and commissions including the Ministry of Industry and Information Technology issued the "Guiding Opinions on Accelerating the Mergers and Reorganizations of Enterprises in Key Industries" (Ministry of Industry and Information Technology Lianye [2013] No. 16), which pointed out that promoting corporate mergers and reorganizations is to promote industrial transformation and upgrading. It is an important measure to speed up the transformation of the development mode; the Ministry of Transport and other four ministries and commissions issued the "Implementation Plan for the Early Scraping and Renewal of Old Transport Ships and Single-hull Oil Tankers", which clarified the specific policy measures and implementation targets for the dismantling and renewal of old ships; the Ministry of Industry and Information Technology also issued the "Standard Conditions for the Ship Industry", which clarified various requirements to further strengthen the management of the shipbuilding industry. All units in the industry have studied and implemented it seriously, and the regional authorities have actively promoted the implementation, and have a deep understanding of relying on innovation to drive, optimize the industrial structure, and promote transformation and upgrading. Strictly controlling new production capacity is a major decision made by the country based on the actual situation of the shipbuilding industry, based on the current situation, and planning for the long term. It is an inevitable choice to maintain the sustained and healthy development of the industry and grow from big to strong.
In 2013, the global shipping market demand rebounded, and the offshore engineering market maintained steady growth. my country's backbone shipping and offshore engineering companies seized market opportunities and strengthened marketing. New ship orders for the year were 69.84 million deadweight tons, a year-on-year increase of 242%, accounting for 47.9% of the world's new ship orders of 145.77 million deadweight tons, and continued to rank first in the world in terms of deadweight tonnage. Among them, the backbone shipping companies have obvious advantages. The top 30 shipping companies received orders of 62.79 million deadweight tons, accounting for 89.9% of all orders. They received orders for various types of offshore engineering equipment exceeding US$18 billion, accounting for approximately 29.5% of the world market share, an increase of 16 percentage points from 2012, surpassing Singapore and ranking second in the world. A total of 61 new orders for various types of offshore engineering platforms and 1 drilling ship were received, including 49 jack-up drilling platforms, accounting for more than half of the world's total.
In 2013, key enterprises and research units strengthened the guidance of market demand, strengthened the development of green and environmentally friendly mainstream ships, accelerated the research and development of high-tech ships and marine engineering equipment, and achieved new progress and new breakthroughs. According to incomplete statistics, more than 100 new green and environmentally friendly ship models were launched throughout the year, and large liquefied natural gas (LNG) ships, large liquefied gas carriers (VLGC), ultra-large series container ships, car roll-on/roll-off ships, and duplex stainless steel chemical tankers were optimized and developed. Most of the ship types have received batch orders for high-tech ships and special ships such as marine law enforcement vessels, official ships, and ocean-going fishing vessels. In terms of offshore engineering equipment, we have independently designed or jointly designed multiple types of self-elevating drilling platforms, self-elevating wind power operating platforms, 1500-meter semi-submersible drilling platforms and deep-water high-performance geophysical exploration vessels, 50,000-ton semi-submersible barges, oil field production stimulation ships, ocean residence ships, wind power basic transport ships and other higher-grade offshore engineering ships. China State Shipbuilding Corporation and China Shipbuilding Industry Corporation have "double-height" ship types, and the proportion of offshore product orders has further increased. In particular, China Shipbuilding Industry Corporation has long been "adhering to innovation-driven and achieving sustainable development". In 2013, it became the only enterprise group in my country to win the first prize of the National Science and Technology Progress Award for "Enterprise Technology Innovation Project".
In 2013, a batch of national key high-tech ship (offshore engineering) technology projects passed acceptance. The ultra-large container ship development project made breakthroughs in key technologies such as overall ship design, comprehensive optimization of hydrodynamic performance, structural analysis and design, power system optimization design, container stacking and securing, cargo hold ventilation, and construction technology; the development of very large oil tankers (VLCC) made breakthroughs in the linear design of ships with less ballast water and the layout of stepped ballast tanks. Key technologies such as new bottom ramp-up structure design; key technologies in the design of marine engineering equipment design and construction scientific research projects (overall scheme, structural design, system integration, three-dimensional simulation, flexible components, etc.), digital analysis technology (stability technology, dynamic positioning, strength calculation, fatigue life, crashworthiness analysis, component vortex vibration, etc.), model testing technology (anchoring positioning, dynamic positioning, wind tunnel model, etc.), platform assembly and manufacturing technology (precision control, system installation, Progress and breakthroughs have been made in professional module manufacturing, overall lifting and closing, no margin construction, power propulsion underwater installation, etc.), special welding technology (welding specifications and standards, high-strength steel welding processes, residual stress control, high-pressure pipeline welding, etc.). This has strongly supported the development of advanced products, shortened the construction cycle, improved the construction quality, and achieved obvious benefits.
In order to meet the increasingly complex administrative law enforcement requirements in surrounding waters, adapt to the needs of maritime law enforcement and deployment, and ensure the safety of Chinese fishermen's maritime operations, my country's shipping companies have successfully delivered new law enforcement ships such as "Hai Jian 01" and "Hai Xun 5001", and have accepted orders for multiple 5,000-ton and 3,000-ton large-scale maritime surveillance ships and 3,000-ton fishery administration ships; completed multi-type dredgers, ocean rescue ships, Salvage ships, etc., have improved the navigation support capabilities and comprehensive maritime emergency rescue capabilities of our country’s maritime sector.
Marine scientific expedition equipment has been further strengthened. The "Jiaolong" manned deep submersible launched its first experimental application in 2013. The first-ever carried scientists completed 21 dives in 3 sections and achieved fruitful scientific research results; the deep-sea mobile workstation "Dragon Palace" completed its final assembly and first pool test, which greatly improved my country's deep-sea exploration and scientific research capabilities; the "Yuanwang 5" ocean-going aerospace survey ship at sea monitored and controlled the automatic rendezvous between the Shenzhou-10 spacecraft and Tiangong-1. "Yuanwang 6" successfully completed the Chang'e-3 lunar landing measurement and control mission, making contributions to the development of my country's aerospace measurement and control industry.
The first domestic maximum power electronically controlled intelligent low-speed diesel engine 10S90ME-C9.2, the first "green" extremely long-stroke electronically controlled intelligent low-speed diesel engine 7G80ME-C9.2, the first self-owned brand 6CS21/32 medium-speed diesel engine, 10,000-ton marine surveillance ship power system, low voltage 690V (2×1000kW) and medium voltage 3300V (2×3000 kW) domestic electric propulsion system, the first 2 trillion watt high-temperature superconducting motor, technologically advanced disc separator, fuel (lubricant) oil supply system, water-sealed incineration treatment system, self-elevating platform lifting device, HDP3 dynamic positioning system, large platform crane, ballast water treatment system, new generation integrated bridge system (IBS), electronic chart display and information system, ship steering instrument and other new products have been successfully developed. After realizing industrialization or completing prototype trial production, the localization rate of supporting equipment for my country's ships and offshore engineering equipment is expected to gradually increase.
Implementing the spirit of the "Implementation Plan" to adjust and optimize the productivity layout of the shipbuilding industry, some enterprise groups and major shipbuilding areas have actively carried out resource integration and optimized industrial layout. CSSC has fully launched internal resource optimization work, and 14 shipbuilding and repair companies have been initially consolidated into 8; integrated the power sector, established CSSC Power Research Institute Co., Ltd., and established CSSC Power Co., Ltd.; adjusted the "four factories and one institute" resources in Jiujiang area, restructured and established CSSC Jiujiang Industrial Co., Ltd.; integrated relevant units, Consolidating the information and control sector, complete logistics industry development platform, etc., has improved industrial concentration, brand influence and market competitiveness. The shipbuilding industry in Jiangsu Province focuses on "high-end development, brand development, diversified development" and optimizes the industrial layout based on regional resources, location conditions and industrial foundation, and promotes the development of special industrial bases such as offshore equipment, ocean-going shipbuilding, and supporting demonstrations; strictly implements industry regulations and gradually eliminates backward production capacity; encourages leading enterprises to invest in small and medium-sized enterprises, backward enterprises, etc. Work is being actively carried out to merge and reorganize enterprises with operating difficulties and enterprises with idle resources, and encourage shipbuilding companies to form strategic alliances.
In 2013, financial institutions such as the Export-Import Bank of China, China Development Bank and relevant commercial banks paid attention to market research, strengthened corporate investigations, and provided financing support to state-owned groups and key private enterprises that met the assessment requirements. According to incomplete statistics, financial institutions signed credit agreements of more than 200 billion yuan with shipping companies, and signed buyer's credits of nearly 5 billion U.S. dollars with overseas shipowners. They supported ship exports through financial leasing, which effectively supported the shipbuilding, contract acceptance, and transformation and upgrading of enterprises.
In 2013, two major shipping groups innovated financing methods, raised funds in the capital market, and successfully issued bonds. CSSC completed an 800 million US dollar bond issuance in Hong Kong, becoming my country's first military industry group to issue 3-year US dollar bonds overseas; China Shipbuilding Industry Corporation integrated military industry resources and went public, raising more than 8 billion yuan, which strongly supported the development of military industry and shipbuilding companies.
Affected by the international financial crisis, the global shipping market continues to be sluggish, with severe overcapacity of ships, severe losses of shipping companies, and the frequent introduction of new shipbuilding regulations. Shipowners are not very enthusiastic about receiving ships ordered in previous years. They have adopted measures such as raising shipbuilding requirements and proposing modifications to ship contracts to delay receiving ships. This has resulted in adjustments to production plans of shipbuilding companies, disrupted production rhythms, increased management costs, increased accounts receivable, worsened financial conditions, and damaged economic benefits. According to analysis, There are more than 10 million deadweight tonnage ships in the industry that have postponed their delivery dates due to various reasons, and the annual shipbuilding completion volume has dropped significantly.
Since the outbreak of the international financial crisis, ship prices have been at a low level for a long time, labor costs have continued to rise, the RMB exchange rate has appreciated, ship owners have delayed delivery of ships, which has increased management costs, the proportion of first-payments has declined, ship owners have seriously defaulted on payments, which has increased the financial costs of corporate loans, shipyards have not started enough, capacity is idle, and the production pace has slowed down. The economic benefits of shipbuilding companies have worsened, and the number of loss-making companies has increased by 46. Statistics show that from January to November 2013, The industry-wide profit was 25.2 billion yuan, a year-on-year decrease of 13.1%; accounts receivable were 106.2 billion yuan, a year-on-year increase of 4%; and financial expenses were 4.99 billion yuan, a year-on-year increase of 12.8%. Although the industry-wide profit still reached 25.2 billion yuan, it mainly came from non-shipping products, logistics support, capital operations and other businesses. The shipbuilding product production business has become basically unprofitable.
The state has proposed that the shipbuilding industry should speed up structural adjustment and promote transformation and upgrading, which has become a consensus. However, in actual implementation, enterprises face various difficulties in transformation. First, the facilities and equipment such as shipyards, slipways, docks, large cranes, and special production lines are difficult to use for other products; second, most small and medium-sized enterprises have insufficient technical strength and weak R&D capabilities, making it difficult to cope with the continuous upgrading of ship technology and adjustments to product structures; third, it is difficult to adjust the business structure and market development. Pillar products are difficult to cultivate and develop; fourth, mergers, reorganizations and acquisitions, lack of motivation for backbone enterprises, and difficulty in solving problems such as employee placement and debt disposal. These problems have brought challenges to shipping companies, and the tasks of structural adjustment, transformation and upgrading are arduous.
Although financial institutions have provided financing support to some state-owned and backbone private shipbuilding companies, for most companies in the industry, especially small and medium-sized enterprises, financing difficulties and financial constraints have been prominent problems that have plagued the production and operation of enterprises in recent years. As a result, some companies cannot start construction of ships as planned, affecting ship delivery progress; some companies have lost orders because they cannot secure loan funds, and the problem of insufficient construction has become more prominent; some companies have even defaulted on employee wages due to financial constraints, bringing instability.
The continued downturn in the international shipping market has also had a direct impact on ship repair companies. In 2013, the shipbuilding industry focused on monitoring ship repair companies to complete ship repairs on 3,608 ships, a year-on-year increase of 2.9%. However, the ship repair output value was only 12.9 billion yuan, a year-on-year decrease of 1.7%. Mainly due to the significant reduction in repair projects such as tail shafts, rudder systems, and mechanical engineering with high added value, most of which were plate replacement, sand blasting, special coating and other projects with low added value. The volume of single ship repair projects has been significantly reduced. At the same time, due to the lack of self-discipline in my country's ship repair industry and fierce competition, ship repair price quotations are significantly lower than the world average. In addition, labor costs continue to rise, and the profit margins of enterprises have been severely squeezed.
The frequent introduction of new international maritime regulations has put forward higher requirements for ship and offshore engineering supporting technologies. Internationally, green, environmentally friendly, energy-saving and emission-reducing, safe, reliable, intelligent, integrated ships and offshore engineering supporting products are constantly emerging, and the upgrading speed is significantly accelerated. Developed countries and regions such as Japan, South Korea, and the European Union have adjusted their development strategies, increased technology research and development, and strengthened the blockade of my country's technology. In order to occupy the marine market, strategies such as low-price competition are adopted; my country's ship supporting industry has weak independent research and development capabilities, and has long relied on introduction and import of key equipment and systems. Compared with Japan and South Korea, the localization rate is at a low level. The development trend of the international ship supporting industry and the competitive strategies of advantageous countries have brought severe challenges to my country's ship supporting industry, which is at a disadvantage. To build a shipbuilding and offshore engineering power, the development of the supporting industry is urgent.
In 2014, according to expert analysis, the U.S. economy continued to grow at a moderate pace, the European economy gradually emerged from recession, the Japanese economy rebounded, the Chinese economy remained at a medium-to-high-speed development stage, and global economic growth intensified. However, the problem of overcapacity in the global shipping market has not been fundamentally resolved, shipping companies have not escaped from the plight of losses, the problem of overcapacity in shipbuilding is still prominent, the price of new ships is hovering at a low level, and new international shipbuilding regulations have created new demand. In this context, experts generally predict that It is difficult for the global new shipbuilding market to fully recover. According to optimistic analysis, new ship transactions may maintain the 2013 level (approximately 140 million deadweight tons), or may fall slightly. From the analysis of ship types, liquefied natural gas (LNG) ships, liquefied petroleum gas (LPG) ships, car carriers, ro-ro passenger ships, chemical tankers, as well as energy-saving, emission reduction, safety, and environmentally friendly mainstream ship markets are relatively promising. The offshore engineering equipment market will remain active, and the market prospects for floating offshore engineering equipment in particular are relatively optimistic.
Affected by the downturn in the shipping market, low prices for completed ships, and rigid increases in production costs, it is expected that the main economic indicators of my country's shipping industry will continue to be at a low level in 2014. The number of completed ships throughout the year will be approximately 40 million deadweight tons. The number of new orders will also decrease slightly, and the number of orders on hand will remain at around 120 million deadweight tons.
2014 is a critical year for the shipbuilding industry to implement the State Council's "Implementation Plan for Accelerating Structural Adjustment and Promoting Transformation and Upgrading of the Shipbuilding Industry (2013~2015)". In order to achieve the development goals proposed in the "Implementation Plan", the entire industry should focus on the following work based on the results achieved in 2013: First, strengthen the publicity, training and promotion of new international shipbuilding norms, new conventions, and new standards, and strengthen research on key common technologies and process technologies. Develop more green and environmentally friendly ship types, high-tech ships and marine engineering equipment that meet market demand; second, speed up the construction of marine support capabilities, build high-quality, high-standard administrative law enforcement ships, emergency support ships, scientific research ships, ocean-going fishing ships and engineering ships to meet the needs of maritime rights protection and law enforcement, emergency rescue, survey and monitoring, engineering construction, and resource development; third, promote corporate mergers and reorganizations and resource integration, optimize industrial organizational structures, and increase industrial concentration. Cultivate internationally competitive shipbuilding and offshore engineering enterprises (groups); fourth, increase the development of key supporting equipment and systems for ships and offshore engineering equipment, and strive to improve the level of localization.
The "Standard Conditions for the Shipbuilding Industry" is the result of in-depth investigations and repeated studies organized by industry experts from the Ministry of Industry and Information Technology. It is a normative document for the shipbuilding industry to strengthen industry management, resolve the contradiction of overcapacity, accelerate structural adjustment, improve technology, promote transformation and upgrading, and guide the sustainable and healthy development of the shipbuilding industry. The China Shipbuilding Industry Association recommends that shipbuilding companies in the industry can actively do a good job in declaration work in accordance with the principle of voluntariness; local authorities, central enterprise (group) companies, industry associations, Professional institutions must also organize the preliminary review and evaluation of application materials, so that this important work in the shipping industry can be carried out in an orderly and standardized manner. Through the implementation of the "Standardized Conditions", enterprises can be promoted to improve and improve production conditions, promote corporate mergers and reorganizations, and accelerate the elimination of backward production capacity.
The shipbuilding industry started early in implementing the "going global" strategy. Since the reform and opening up, ship exports and technology introduction have achieved brilliant results; in recent years, some companies have seized the opportunity to acquire and merge overseas design and research companies and brands, and have also achieved certain results. The documents of the Third Plenary Session of the 18th Central Committee of the Communist Party of China and several documents promulgated by the state on the shipbuilding industry further promote foreign investment and cooperation, cultivate world-class groups, acquire advanced technologies, brands, and optimize industrial layout. It has pointed out the direction of "going out" for the shipbuilding industry. The China Shipbuilding Association believes that although my country's shipbuilding industry has obtained low-cost advantages, the timing and conditions for direct investment in the construction of shipyards are not yet mature. However, in order to obtain technology, brand, human resources, improve marketing level, and get closer to the overseas local market, through self-construction, mergers and acquisitions, joint ventures, cooperation and other methods, the layout and establishment of R&D centers overseas, the establishment of marketing and maintenance networks and production and manufacturing bases. It is an important task that large enterprise groups in the industry need to conduct in-depth research and actively implement.
There are 1,541 SMEs among the 1,664 enterprises above designated size in the statistics of the shipbuilding industry, accounting for 92.6%, including 717 shipbuilding SMEs and 549 ship supporting SMEs. They are an indispensable part of the shipbuilding industry. Since the outbreak of the international financial crisis, the development of SMEs has been very uneven. Some companies have correctly positioned their products, given full play to their advantages and expertise, strengthened scientific and technological research and development, gradually developed in their fields, and made their own characteristics. The economy is operating well; due to the impact of the industrial environment and own conditions, some enterprises are unable to sustain production and are in danger of suspending production and going bankrupt. To this end, the China Shipping Association recommends that relevant departments at all levels pay active attention to the adjustment and development of small and medium-sized enterprises and provide classified guidance. Enterprises with certain strength should be supported in terms of product research and development, financial taxation, talent introduction, etc., and guide them to develop into "professional, refined, special, and new" enterprises; for enterprises that have been unable to maintain normal production, they should be guided to make decisive adjustments. Help solve various problems that arise during adjustment.
Since the marine engineering equipment industry was listed as a strategic emerging industry in my country, it has attracted great attention from relevant provinces (autonomous regions, municipalities) and relevant industries. Many companies have regarded marine engineering equipment as an important direction for product structure adjustment. According to incomplete statistics, my country currently has more than 20 offshore engineering equipment manufacturing companies and nearly 100 offshore engineering ship manufacturing companies. The marine engineering equipment industry is a high-tech, high-investment, high-risk, and high-entry barrier industry, and the global market size is limited (60 billion~80 billion billion US dollars), international competition is quite fierce (competition with South Korea, Singapore, Brazil, etc.), and the contradiction between overcapacity at home and abroad has begun to emerge. Therefore, the China Shipping Association recommends that the development of my country's offshore engineering equipment must strengthen overall planning, cultivate backbones, pay attention to market, technology, quality, production capacity, legal and other risk analysis, strictly control new production capacity; pay attention to the coordinated development of the industrial chain, strengthen front-end design, basic technology research, key supporting system development and the development of related service industries.