Cosco Shipping to close shipyards in China

COSCO Shipping Heavy Industry (CSHI) plans to close three of its five offshore shipyards due to overcapacity, and order cancellations and delivery delays from owners, according to the Group's general manger, Liang Yanfeng.
 
He said CSH would be closing down three yards in Nantong, Zhoushan and Dongguan by 2020 while two other offshore yards Qidong and Dalian would remain open with the capability to build high-end units such as ice-class vessels and drilling platforms, Seatrade Maritime News reported citing the China Daily.
 
The shipyard group will also be cutting its offshore product range by half from 18 to nine by 2020.
 
"In addition, declining international oil and shipbuilding prices, growing material and labour costs have all become factors to squeeze shipyards' earning ability globally," Mr Liang said.