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      1. It is reported by Trade Winds that Chinese government authorities are pushing for the merger of offshore yard group China Merchants Heavy Industry (CMHI) with smaller shipbuilder Avic Inter­national Ship Development.

        The unpublicised plan comes not in response to financial troubles — Avic’s two yards have strong niche orderbooks — but as part of a policy to consolidate state-owned enterprises into larger internationally competitive groups, each integrating a strategic industry.

        The State-owned Asset Supervision and Administration Commission, the ultimate shareholder of China’s central state-owned companies, is said to have ordered the two shipbuilding companies and their parent groups to the ­table in March.

        CMHI shipbuilding officials told TradeWinds the discussions are being conducted at a higher level in the organisation. They expect a bigger CMHI group to involve more centralisation of marketing, commercial and engineering departments. The individual yards’ identities and operations would otherwise remain separate. Avic officials deferred to higher group officials, who were not immediately available.

        Avic Weihai in Shandong province was once known as a bulker builder, delivering tonnage from handy up to post-panamax, as well as small containerships. Now, it pins its hopes on ropaxes, with Sweden’s Stena RoRo as a key ­customer.

        Avic Dingheng, up the Yangtze at Yangzhou in Jiangsu province, has built asphalt carriers and small gas carriers but presently concentrates on small tankers ­under 20,000 dwt, mainly for ­German and Scandinavian owners that trade domestically or in the environmentally demanding Baltic and North Sea.


        AVIC Dingheng two tanker blocks docking in one day
        CMHI Five Expedition Cruiser Vessels on orderbook valued RMB 2.1 billion

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        CMHI May Merge with AVIC International Ship Development

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