Global Shipbuilding Weekly Round-up Week 2, August 2025

1. China: State Shipbuilding Mega-MergerCompleted   World’sLargest Builder Formed  

   • On the evening of 4 August, CSSC (China State ShipbuildingCorporation) and China Shipbuilding Industry Company (CSICL) issued identicalstatements: trading will be suspended from 13 August to allow dissentingshareholders to exercise cash-exit rights, and CSICL will delist after thefinal session on 12 August.  

   • The merged behemoth will command:

      Total assets > RMB 400 billion (~US$55bn)  

      Annual revenue > RMB 130 billion  

      An orderbook equal to 18 % of global tonnageon order   all three metrics will rankfirst worldwide.  

   • Exchange ratio: 1 CSICL share = 0.1339 CSSC share.  

    Cash-exit prices: CSICL RMB 4.03 (-16 % vs 4 Aug close); CSSC RMB 30.02(-13 %).  

   • Pre-suspension combined market capitalisation: RMB 277.8 bn   1.8× Hyundai HeavyIndustries.  

   • Synergies already materialising:

      H1-2025 guidance: CSSC net profit +98-119 % toRMB 2.8-3.1 bn; CSICL +182-238 % to RMB 1.5-1.8 bn.  

      Post-merger: 35 key yards (Dalian, Wuchang,etc.) under unified procurement → steel costs 5-8 %,annual overhead savings > RMB 2 bn.  

      LNG-carrier capacity set to double; grossmargin per vessel projected to rise from 35 % to 42 %, challenging Korea’s dominance in high-end tonnage.

2. China: Green Transition Accelerates   Clean-Energy Ships Now 74 % of Orderbook  

   • Yangzijiang Shipbuilding (largest private yard)  

      Orderbook: 236 vessels / US$23.2 bn, slotsfilled to 2030.  

      74 % are clean-energy designs: 12LNG-dual-fuel, 46 methanol-dual-fuel units.

      H1-2025 net profit: RMB 4.2 bn (+37 %); margin35 % vs global average ~20 %.  

      New H1 orders: 14 units, 10 of them IMO2023-compliant, including 2 × 15,000-TEU methanolbox-ships for Norwegian owners at US$185 m each.  

      Capex: RMB 1.5 bn for a smart yard inJingjiang—20 robotic welding lines to cut build time15-20 %.  

   • Shanghai Waigaoqiao Shipbuilding

      On 8 Aug delivered “GRANDETIANJIN”, a 9,000-CEU PCTC   its 600th vessel since founding.  

      Record dock-to-delivery cycle: 179 days.  

      MAN B&W 8S60ME-C10.5-GI-EcoEGR main engine+ energy-saving devices cut fuel consumption 18 %; BV “ammonia-ready” notation for future zero-carbon conversion.  

      Cumulative deliveries: 102.02 m DWT, averaging4.64 m DWT per year.

3. International Turbulence: FincantieriHit by Quality Scandal; Korea Speeds Up Offshore Expansion  

   • Fincantieri (Italy)  

      Suing Finland’s Parocfor supplying fire-insulation boards alleged to have passed EU tests withfalsified samples; real fire-resistance only 45 min vs certified 60 min.  

      Impact: 3 Explora-class cruise ships delayed;8 vessels in service + 3 under construction need retrofits. Estimated cost >US$100 m plus reputational damage.  

      H1-2025 still strong: EBITDA €311 m (+45 %), revenue €4.58 bn; orderbacklog €57.7 bn (~US$48.4 bn).  

      New underwater division revenue +83 %; wonItalian Navy U212 NFS submarine programme   global submarine market seen at €50 bn.  

   • Korea: HD Hyundai Heavy Industries

      To lease the former Subic Bay yard of HanjinHeavy Industries (Philippines) for US$550 m; production starts Jan 2026.  

      Capacity: 10 mid-sized vessels/year, 7 000jobs   targeting bulkers and feedercontainerships to exploit 25-30 % labour-cost gap vs Korea.  

      Korea-U.S. “Indo-PacificShipbuilding Partnership”: 13 Aug Korean ForeignMinister Cho Hyun-dong and U.S. Chargé d’Affaires Joseph Yun toured HD Hyundai Ulsan yard, exploring navalrepair cooperation.  

   • Russia  

      On 14 Aug launched frigate Admiral Amelko(Project 22350, hull #5) at Severnaya Verf, St Petersburg.  

      5,000 t, Kalibr cruise missiles &Poliment-Redut air-defence; to join Pacific Fleet.  

      Build cycle 40 % shorter than lead ship   proof, says Navy chief Admiral Moiseyev, thatRussian yards have recovered to pre-sanction levels.