Shipbuilding giant CSSC moves closer to asset integration

Nine listed subsidiaries of China State Shipbuilding Corp Ltd, or CSSC, announced on late Thursday that they will transfer equity to CSSC, a major step in asset integration after their erstwhile parent groups started merger in 2019.

Three listed companies of previous China State Shipbuilding Corp, including CSSC Science and Technology Co Ltd and CSSC Offshore and Marine Engineering (Group) Co Ltd, and six listed firms of former China Shipbuilding Industry Corp, such as China Shipbuilding Industry Group Power Co Ltd, announced in separated notices that all of them will unconditionally transfer their equities to CSSC as part of the merger process.

As a result, the CSSC will own the controlling stakes of these nine companies.

To boost the nation's shipbuilding industry and facilitate the building of a strong navy, these two companies merged to form CSSC.

The new State-owned shipbuilding conglomerate now sets sail to dominate several industry segments relating to military vessels, liquefied natural gas or LNG carriers, luxury cruise liners, icebreakers and offshore engineering equipment among others.

The nine listed companies also said in their notices that after the completion of the transfer, CSSC will be able to optimize core capacities to focus on the development of marine defense equipment, ship, offshore equipment and technology application industries, as well as marine service business to build a world-class shipbuilding group with a reasonable industrial structure, leading quality and efficiency, and strong international competitiveness.