According to Suzhou Cosc Marine Machinery, shipping and shipbuilding are among the most internationalized and market‑oriented industries, which are hardly subject to artificial intervention. This also renders shipbuilding a high‑risk sector. Beyond fluctuations in cargo‑transport demand, factors such as global political turbulence, commodity prices and exchange rates can directly or indirectly affect shipbuilding supply.
It is reported that the Ministry of Industry and Information Technology has released two batches of shipyards complying with the ship‑industry regulatory requirements. Private shipyards are thereby divided into two categories: “whitelist” shipyards and “non‑whitelist” shipyards. Whitelist‑listed shipyards may continue to obtain bank support. Most critically, banks can issue repayment guarantees required for export vessels and provide construction financing services.
Based on statistical data from Suzhou Cosc Marine Machinery, excluding various state‑owned shipbuilding enterprises, there are conservatively estimated to be more than 150 operational private shipyards in China with certain ship‑construction capabilities. Some well‑funded private enterprises have begun to invest in new‑building vessels with self‑raised funds. A few private enterprises even fund nearly the entire construction cost and act as de‑facto ship‑owners, while appointing foreign management companies as nominal ship‑owners, and have achieved brisk business for a time. Nevertheless, such a model is not sustainable.
Private enterprises are constrained by limited capital. Since the current shipping cycle has not yet bottomed‑out and rebounded, the ship market faces further downside risks. If the market remains mired at a low point, private shipyards will inevitably run into financial strain. As Suzhou Cosc Marine Machinery points out, some private enterprises lack the capacity for independent investment and have to accept price pressure from ship‑owners, taking ship‑building orders at low prices or even at a loss — a practice tantamount to drinking poison to quench thirst.
Even so, these private shipyards still stand a chance to compete with state‑owned enterprises as well as South‑Korean and Japanese shipyards for the shrinking volume of new‑building orders in the global market. To survive, private shipyards must strive for orders whole‑heartedly whenever the vessel type is suitable and the price is acceptable.
Suzhou Cosc Marine Machinery Co., Ltd. (abbreviated as COSC) is a specialized manufacturer of side thrusters (CP & FP), azimuth rudder propellers and main‑propulsion controllable‑pitch propellers (CPP). By introducing advanced foreign technologies and production‑management methodologies, together with a responsive and comprehensive after‑sales service system, the company has earned high recognition from customers at home and abroad.