Shipbuilding industry slows further
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E-mail Xinhua, June 26, 2012
China's shipbuilding companies saw sharp declines in output and new orders in the first five months as a result of the dismal global economy.
New shipbuilding orders fell more than 47 percent year on year during the first five months, according to statistics released Monday by the China Association of the National Shipbuilding Industry.
For the country's ship manufacturers, completed shipbuilding volume also fell more than 10 percent year on year in the first five months, with incomplete orders declining about 27 percent year on year by the end of May, according to the association's data.
In the January-May period, the industrial output of the country's shipbuilders totaled about 240.6 billion yuan (38 billion U.S. dollars), up a meager 0.7 percent from a year ago.
Due to slack external demand, ships delivered overseas fell more than 11 percent from January to May compared to the same period last year. Marine engineering equipment delivered overseas, however, surged 42.7 percent from a year earlier, according to the data.
Analysts said severe challenges loom ahead for the shipbuilding industry, as insufficient external demand, shrinking orders and increasing instances of contract defaults will continue to squeeze the sector's profitability.
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