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China's shipbuilders 2008 profits up 50%

(Xinhua)
Updated: 2009-02-03 10:29

Profits of China's shipbuilders rose 50 percent in 2008 from the same period a year ago, despite rising material costs and the appreciation of Renminbi, according to data released Monday by the Ministry of Industry and Information Technology (MIIT).

Related readings:  Shipbuilding industry to see blue in three years  Dalian 'growing as shipping center'  Shipbuilding stimulus plan under discussion

Profits jumped 50.5 percent to 28.34 billion yuan ($4.05 billion). The industry value totaled 118.3 billion yuan, up 61.2 percent year on year.

The nation's shipbuilders completed a production capacity of 28.81 million deadweight tons (DWT), or 29.5 percent of the world's total, up from 22.9 percent in 2007, according to MIIT figures.

New orders comprised 37.7 percent of the world's total, with a production capacity of 58.18 DWT. Current orders accounted for 35.5 percent of the total, with a capacity of 204.6 million DWT.

An official with the MIIT said China's shipbuilders had remarkably strengthened their capabilities in innovation and had improved their techniques notably in making bulk cargo ship, oil carrier and container ships.

They also had the world's leading techniques in making ships that could meet the standards of the international classification society, according to the MIIT official.

He warned, however, that as the global financial crisis begins to take a toll on the shipbuilding sector, the industry could face severe challenges in the coming two-to-three years.

He said it has become more difficult for shipbuilders to raise fund as there has been a sharp decrease in new orders and defaults on new orders are on the rise.