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Turning crisis into business opportunity, advancing towards the high-end of the industrial chain

2025-04-10

Jiangsu Province has been ranked as a major shipbuilding province in China for 11 consecutive years, with nearly 4000 shipbuilding enterprises, including more than 420 large-scale shipbuilding industry enterprises. Last year, the province's shipbuilding completion volume was 18.017 million deadweight tons, accounting for 49.1% of the national share, achieving sales of 118.09 billion yuan, a year-on-year increase of 17.4%, and forming a hundred billion level shipbuilding industry chain.

Facing the "giant wave" of the global epidemic, what crises is Jiangsu's shipbuilding industry facing, and where will it "sail" towards? As of mid to early April, the invoicing sales of our province's shipbuilding industry have increased by over 16%. The achievement of counter trend growth is due to the fact that enterprises mainly confirm sales based on the production progress of orders in hand, so the impact of the epidemic in the early stage is not significant. However, the global spread of the epidemic will inevitably have a significant impact on the invoicing sales performance in the second quarter. According to the analysis of relevant personnel from the Provincial Shipbuilding Industry Association, looking at the international "ship market", the continued downturn in the shipping and shipbuilding markets due to the impact of the epidemic is "adding insult to injury", and the confidence in new ship investment is further weakened. This situation is likely to continue for a long time.

However, the danger lies in organic matter. Last year, the shipbuilding industry in our province held nearly half of the national and one-fifth of the world's orders. Orders for shipbuilding in the new era have been scheduled until 2022, and there is still time to wait for industry recovery and transformation and upgrading.

The shipbuilding industry in our province should shift towards high technology and high added value, and seize international market share, "said the person in charge of New Era Shipbuilding. In order to break the monopoly of some countries in LNG ship freezing technology, the company is trying to redesign LNG ships using compression technology. Currently, it is in the stage of design, modeling, and demonstration, and urgently needs support in technical welding. The impact and potential risks brought by the epidemic have highlighted the necessity of intelligent transformation for enterprises, "said Xu Rong. Cruise ships are known as the" crown jewel "of the shipbuilding industry, and our province has the ability to build all types of ships except for ocean luxury cruise ships. China Merchants Heavy Industry is carrying out the construction of an intelligent shipyard for cruise ships, with an investment of over 3 billion yuan in intelligent equipment alone. He suggested that relevant provincial departments should introduce a "point-to-point" policy for the intelligent and automated transformation of the shipbuilding industry, to help enterprises quickly get rid of their dependence on foreign technology.

In the long run, it is necessary to increase financial support for shipbuilding enterprises in terms of credit and financing, and support the development of the shipbuilding industry towards the high-end of the industrial chain, "suggested Chen Xiong, Dean of the School of Mechanical Engineering at Nanjing University of Science and Technology. For example, led by the provincial government, a bank credit consortium will be established to adopt differentiated credit policies for each enterprise