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            The consolidation of China and South Korea's two "mega-yards" will change the global shipbuilding landscape and could drive up prices.

            Two "super shipyards" will dominate the market ,according to the Wall Street journal, Vessels Value data show that the merger of China shipbuilding heavy industry with China shipbuilding corporation and Hyundai heavy industries of South Korea and Daewoo shipbuilding industries will create two shipbuilding giants with about 46% of the global shipbuilding market controlled by the world's 10 largest shipyards.

            After the merger, shipowners expect the cost of new vessels from Chinese and South Korean companies to rise by 5% to 10%.

            For now, the merger of Hyundai heavy industries and Daewoo shipbuilding appears to have the upper hand.The combined order book for Hyundai heavy industries  and Daewoo shipbuilding totals 326 ships, slightly less than the 428 ordered by China's two largest groups after their merger. However,Hyundai heavy industries and Daewoo shipbuilding are worth more than $33bn in hand-held orders, far more than the $19bn combined between China's two largest groups.

            Meanwhile, Hyundai heavy industries - Daewoo shipbuilding now has 54 per cent of the world's LNG ships on hand, compared with just 7 per cent held by CSIC.CSIC has a bigger share of low-yielding bulk carriers, It accounts for 31 per cent of bulk carrier orders, compared with just 15 per cent for Hyundai heavy industries and Daewoo.

            The two companies rely heavily on state-controlled internal leasing companies, the report said. At the end of June, CSIC Leasing, a unit of CSIC, ordered 24 ships at CSIC's shipyard. It's worth about $2 billion, nearly doubling the size of the fleet. CSSC Shipping, a unit of the China Shipbuilding Group, also ordered more than 30 new ships worth about $1.5bn at its shipyards in January.


            CMHI Five Expedition Cruiser Vessels on orderbook valued RMB 2.1 billion
            Can the Scrubber be stopped?

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            China and South Korea "Super Yards" will change the global shipbuilding pattern

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