China has completed the merger of China State Shipbuilding Corporation (CSSC) and China Shipbuilding Industry Company (CSIC) to create a new shipbuilding company.
The intention to merge the CSIC and CSSC by the owner Assets Supervision and Administration Commission was first announced in July.
The aim was to create a shipping firm that can compete with global heavy-weights in the maritime industry, including South Korean Hyundai Heavy Industries that is in the process of acquiring Daewoo Shipbuilding and Marine Engineering.
CSSC manages shipbuilding business in the east and the south of China, while CSIC oversees ship-building activities in northern and western parts of China.
The new entity will retain the brand name of China State Shipbuilding Corporation Ltd. It will have approximately 147 scientific research institutes, listed companies and enterprises.
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The merged entity will have total assets of CNY790bn ($112.29bn) and employ 310,000 people.
The merger will manage the largest shipbuilding and repair facilities in China. Supported by the shipping research and development abilities, the company will be able to fulfil the global technical standard and safety agreements.
Assets Supervision and Administration Commission director Hao Peng said the merger will enable the company to remove low-end backward production capacity and improve the industrial structure of the shipbuilding industry in the country.
He added that the CSIC-CSSC merger will accelerate the development of high-tech and high-value-added research and industrial capability in China. It will strengthen the shipbuilding industry in China and worldwide.
CSIC and CSSC were part of the same division until 1999 when they were split into two separate entities. The two firms manage numerous shipyards across China and build aircraft carriers for commercial ships.