Chinese media analyzed recently troubled Chinese shipbuilding industry and insisted that Chinese shipbuilders should model themselves after South Korean shipbuilding industry.
According to National Business Daily Meiri Jingji Xinwen, although China brought decent record in 2011, when global shipbuilding market was in a depression, some worried that many small-and-medium size yards would fall behind without any work left.
Moreover, declining newbuilding price and increasing costs of equipment, material, personnel expenses, etc. keep pressuring yards to make profits.
Korean shipbuilders have been facing difficulties as well, however, they contracted cumulative of 12.07m cgt, up by 17.2%, taking 51.2% of overall orders, in the first nine months 2011, while global orders dropped by 22.3%.
The press pointed out that Korea's high-end technology boosted massive orders for ultra-large boxship, LNG carrier, drillship, etc., however, Chinese builders, being late to secure high-value technical skills, were hit hard by plummeting demand for commercial ship, such as bulker, tanker, etc.
It said key factors of Korea's success - solving financial problems through decisive M&A, rapid globalization and technical skills.
Also emphasized that Chinese yards should develop and construct high-value eco-friendly vessels, which are in high demand in the market.