Chinese government has announced an 'Offshore Plant & Equipment Industry Development Strategy (2011-2020)' to support offshore plant-related companies for ten years from now.
According to this plan, China aims to establish a foothold on offshore industry by 2015 and join the ranks of global developed countries up to 2020.
China plans to meet the demand for offshore plant by securing its own designing/building technology and core technology for offshore equipment and developing offshore-plant designing system by 2015, in detail.
Also, it would promote leading offshore plant companies and prepare for autonomous construction of latest-model offshore plant by 2020, with the help of arranging self manufacturing, facility supply and technical service system, etc.
Chinese government seems to have a firm determination on overcoming a depressed shipbuilding industry with offshore plant.
Meanwhile, China would support the industry in four ways - offshore-industrial innovation project, reinforcement of inter-industry coalition by demand creation for offshore plant, recruitment of technically qualified human resources by reinforcing international cooperation and improvement of industrial structure with governmental policies.
Although China has built up a foundation in building or designing FPSO, drillship, semi-submersible drilling rig, etc., it needs to be more competitive in high-value new plant sector.
Meanwhile, China depends over 70% of offshore equipment on overseas market, making only 15% of profit from the equipment in a project. What is worse, in case of newly-developed offshore plant, it only builds hull.
If the Strategy goes well, offshore plant market in China would expand and more companies are forecast to start offshore business.
In the near future, overseas companies seem to be harder in placing Chinese offshore market, as China improves technology and its local content policy, etc.
More Chinese are speaking up for establishment of local content policy in offshore plant to foster domestic equipment makers and prevent overseas companies' monopolization.