Hong Kong - China’s government has approved the merger of the two largest state-owned shipbuilding companies CSSC and CSIC. The merger would allow China to establish a shipbuilding giant with a combined income of up to 1 trillion yuan (US $ 141.5 billion), capable of building vessels ranging from warships, such as aircraft carriers, to civilian ships as container ships and tankers, said a source familiar with the merger plan.
“ The State Council has approved the implementation of the joint restructuring of CSSC Group and CSIC,” write the two companies in their voluntary announcement.
CSIC and CSSC were part of the same group until 1999, when they were divided into two separate entities. Since then, China has surpassed South Korea and Japan to become the world’s largest merchant ship builder, an increase driven by the rise of world trade and the country’s accession to the World Trade Organization in 2001. CSSC manages the Shipbuilding businesses in eastern and southern China, while CSIC oversees activities in the northern and western parts of the country.