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    Domestic shipbuilding industry mergers and acquisitions reorganization boom

    Word:[Big][Middle][Small] QR Code 2017/5/18     Viewed:    

    Domestic shipbuilding industry mergers and acquisitions, reorganization of the case is showing an increasing trend. Among them, the acquisition of Weihai Shipyard, the Yangtze River Shipyard successive acquisition of Xinfu Shipyard, the sea and other enterprises, the European and Chinese shipbuilding acquisition Dexing ship company, CIMC Group acquired the case of Zhongbo Jing Lu ship are very eye-catching The With the financial crisis on the impact of the lag effect of the ship market further show that the future operation of small and medium-sized shipyards will be more difficult, the domestic shipbuilding industry is expected to usher in a deeper level of structural adjustment.

    Domestic shipbuilding industry mergers and acquisitions heat

    The global financial crisis has been three years since the outbreak of the shipping market downturn, ship financing difficulties, so that the domestic shipyard business has been severely tested. Despite the deterioration of the living environment caused part of the small and medium-sized shipyard bankruptcy or conversion, but most shipyards still struggling to survive. With the deepening of the adjustment of the shipping market, domestic mergers and acquisitions, reorganization as a sign of the shipbuilding industry restructuring has been kicked off.

    Local backbone of the ship to grab the first shot

    Thanks to the support of the state in recent years on the shipbuilding industry, some local shipping companies to grow rapidly, and have a further bigger and stronger basis. Recent acquisitions with shipbuilding-related businesses are carried out by local key shipyards.

    In the process of mergers and acquisitions of small and medium-sized shipyards, sub-plants and ancillary plants, Jiangsu Yangtze River Yangtze River Shipbuilding Group has repeatedly shot, since last year has been purchased from Jiangsu Chang Bo Shipyard, Jiangsu Xinfu Shipyard, Jiangsu Runbo Heavy Industries and other enterprises, in the rapid expansion of shipbuilding and related business capabilities, but also attracted the industry's most attention.

    In June 2010, the Yangtze River Shipbuilding Company purchased 51% equity interest in Jiangsu Changbo Shipyard Co., Ltd. for RMB 156 million yuan. By increasing the capital reserve of Changbo Shipyard, the shipbuilding capacity of Yangtze River Old Factory increased by 12. After the Yangtze River Shipbuilding and the purchase of Jiangsu Xinfu shipbuilding, Jiangsu Huayuan two companies, plans to expand the ship repair and shipbreaking business; to March 2011, the Yangtze River shipping industry in Xinfu Shipyard holdings from 20% Increased to 60% and expanded the shipyard's large dock facilities to meet the needs of future construction of VLCC and 10,000-box container ships. Recently, Xinfu Shipyard is building 545 × 147 meters of large dock, will be equipped with two sets of 900 tons of gantry crane, put into use at the end of June 2012. It is reported that Xin Fu Shipyard by the end of 2012 full production, the shipbuilding capacity of up to 300 million deadweight tons. In addition, in order to increase the processing capacity of segmentation and increase operating income, the Yangtze River Shipbuilding Company also acquired Jiangsu Zhongzhou Marine Engineering, which provided the segmented processing services for RMB 420 million, and acquired the project for US $ 6.54 million Steel processing services in Jiangsu Runbo Heavy Industries 54.47% stake.

    Jiangsu Rongsheng Heavy Industry is another large-scale implementation of corporate mergers and acquisitions of the backbone of the ship, but its main target is the construction machinery and power engineering enterprises. In 2010, Rongsheng Heavy Industries acquired most of the shares of Zhenyu Machinery began to enter the construction machinery industry. In April 2011, Rongsheng Heavy Industries acquired the entire share capital of Quanchai Group for 2.15 billion yuan, enhancing the company's competitiveness in the high-speed diesel market.

    Large state - owned enterprises cross - industry mergers and acquisitions

    In the recent shipbuilding merger and reorganization case, some non-ship industry, large state-owned enterprises also seize the opportunity to further encroachment shipbuilding business. For example, CATIC and CIMC acquired the Weihai Shipyard and Zhongbo Jinglu Shipyard respectively. Among them, China Aviation Technology is a wholly state-owned company under the China Aviation Industry Group, mainly engaged in ship trade, machinery vehicles, complete sets of equipment, mechanical and electrical products import and export and industrial investment business; and CIMC mainly engaged in container, road transport vehicles, Equipment and airport equipment, etc., later participating in Yantai Raffles ship industry to enter the special ship and marine engineering construction business.

    Earlier this year, China Aviation Technology and Weihai City, the SASAC signed an agreement to start the reorganization of Weihai Shipyard. According to the agreement, the two sides set up a new joint venture company to increase the share capital of Weihai Shipyard, China Aviation Technology accounted for 70% of the shares; and, China Aviation Technology also for the shipyard to provide one billion US dollars in construction ship security guarantee. After the reorganization, the shipyard operation scale will be further expanded, is expected in 2013, 2015 will be the formation of 2 million dwt and 3 million dwt capacity, sales revenue will reach 10 billion yuan and 20 billion yuan. In the future, the new shipyard will receive a large number of orders placed by China Aviation Technology, and will rely on China Aviation Technology to obtain the China Export-Import Bank, Bank of China, Bank of China and other large financial institutions to support financial support to ease the financial pressure.

    At the end of June, CIMC signed a cooperation agreement with Zhongbaijing Lu Ship Company to jointly design and build marine and special vessels. In addition, according to the CIMC Group and Penglai municipal government signed a framework cooperation agreement, CIMC will also invest in Penglai large-scale marine engineering and high value-added ship construction facilities, and the acquisition of local Yiyang shipbuilding, Bohai shipbuilding, , Star Heavy Industries and other enterprises, to expand the large-scale sub-section in the region, marine modules, sea craft and drilling platform production scale. As a result, CIMC has further expanded its business in the field of shipbuilding and marine engineering through mergers and acquisitions.

    Small and medium - sized ship enterprises waiting for an opportunity

    In addition to large-scale backbone enterprises, non-shipbuilding industry, large-scale state-owned enterprises, some small and medium-sized local shipping enterprises have begun to implement mergers and acquisitions to improve shipbuilding capacity, expand the scale of operation.

    March 2011, Zhejiang Europe and China Shipbuilding wholly-owned acquisition of Zhejiang Dexing Shipbuilding Industry Co., Ltd., an increase of 70,000-ton dock, a 70,000-ton outfitting wharf, as well as some supporting plant and other infrastructure. It is reported that Dexing ship is located in the west side of Europe and China shipbuilding, the acquisition of Europe and China shipbuilding facing the dock, dock and production site resources under pressure to a large extent to ease.

    Analysis on the Factors Affecting the Merger and Reorganization of Domestic Shipbuilding Industry

    Leading to the external factors of mergers and acquisitions reorganization boom

    The lack of external market demand for small and medium-sized shipbuilding enterprises to bring the pressure, and finally transformed into the enterprise to seek through the sale, and stronger strength of the ship to cooperate in order to obtain the driving force of living space.

    After the global financial crisis in 2008, many research institutions predicted that the global shipbuilding industry will be a lot of mergers and acquisitions, restructuring, in particular, China and South Korea emerging small and medium-sized shipbuilding and mergers and acquisitions, reorganization will be more. South Korea pay more attention to industrial restructuring, through the government-led corporate credit rating to eliminate backward production capacity to support the development of potential shipbuilding enterprises; and China's small bankruptcy bankruptcy, which also resulted in large-scale mergers and acquisitions of China's shipbuilding industry " Late ", the process of industrial restructuring greatly lagged behind South Korea.

    To completely solve the problem of backward production capacity of China's shipbuilding industry, serious waste of land and shoreline resources and weak business competitiveness, shipbuilding industry mergers and acquisitions, the implementation of industrial upgrading is imperative. The continued impact of the financial crisis has made some small and medium-sized shipbuilding business difficult to sustain. According to China Shipbuilding Industry Association statistics, the first half of this year, about half of the domestic enterprises did not receive orders, the focus of the monitoring of 43 ship companies have not received orders; the same time, shipbuilding completed for six consecutive months over the same period The amount of new orders, ship orders continue to decline. Lack of orders, will make some enterprises in the first half of next year into the task of inadequate construction, individual enterprises and even to the fourth quarter of this year has been no ship can be made.

    Leading to mergers and acquisitions reorganization boom internal factors

    * Low-cost expansion drives shipbuilders to implement mergers and acquisitions

    Small and medium-sized shipbuilding enterprises in the operating difficulties, for its realization of low-cost expansion, expand the scale of operation to create a great opportunity.

    As the new shipbuilding facilities are subject to the natural environment and geographical conditions, and the investment cycle is longer, high cost, in the current ship market sluggish, uncertain prospects under the situation there is a high risk, and through direct acquisitions can be a large extent To reduce the risk of investment, and can be used at a lower cost to achieve a higher return on production, and thus in the market when the implementation of the acquisition of those who want to further expand the scale of the enterprise, is undoubtedly a very wise choice.

    For the subsequent implementation of the merger, the Yangtze River Shipbuilding said the acquisition of sub-plant, steel processing plant will help improve shipbuilding capacity, reduce its shipbuilding costs, shorten the construction period, reduce the shipbuilding process of third-party steel processing, Processing dependency. In addition, the acquisition of Jiangsu Runbo Heavy Industries also holds 51% stake in Jiangsu New Yangtze Gas, but also help to protect the shipyard of various types of liquefied gas demand.

    * Improve the business structure, the need for diversified development

    For the merger and reorganization of diesel engine enterprises, we can improve the business structure to meet the needs of diversified development. For example, Rongsheng Heavy Industries acquisition of the whole group, for the diversification of heavy industry enterprises to create greater advantages.

    Quanchai Group's core business is high-speed diesel engine, its core holding company Anhui Chai Chai power listed in 1998, Anhui Province is the only one of the internal combustion engine industry, is also the largest domestic production of small and medium-sized cylinder diesel engine production base. The core business of Rongsheng Heavy Industry's own power plate is the low-speed diesel engine, the current production of marine diesel engine is mainly used for shipbuilding. The acquisition of the whole diesel power, on the one hand to make up for the Rongsheng Heavy Industries in the power sector on the blank, forming a more complete product line; the other hand, high-speed engine can also build a new building machinery sector to provide support, External procurement costs, and further accelerate the diversified development of Rongsheng Heavy Industries.

    Extend the industry chain to reduce costs

    The recent merger and reorganization, the shipping enterprises are to meet their own shipbuilding business development needs, select the sub-plant, supporting the acquisition of enterprises, and the acquisition of Weihai Shipyard is also due to "self-made sales" purposes. Overall, through the merger and reorganization to extend the industrial chain, can greatly reduce the cost of the enterprise, improve profitability.

    Through the acquisition, the Yangtze River shipping industry will be in the Yangtze River Shipyard (old factory) and the new Yangtze Shipyard (new plant) on the basis of the increase in long Bo Shipyard and Xin Fu Shipyard for the shipbuilding enterprises, Paragraph construction, steel processing and pretreatment supply enterprises, Jiangsu Huayuan for the shipbreaking enterprises, and further enhance the enterprises in the shipbuilding industry chain of all aspects of profitability.

    * Reorganization of external technical and financial support

    In early September, COSCO Group's COSCO Shipbuilding Company issued a notice of 34% equity interest in Dalian COSCO Shipbuilding Industry Co., Ltd. (DACOS) at the Tianjin Equity Exchange, with a listing price of RMB117 billion. It is reported that DACOS shareholders, COSCO Shipbuilding Industry Company holds 70% stake in Nantong COSCO Kawasaki holding 30%. 2010, DACOS loss of about 78.37 million yuan, operating income of 660 million yuan.

    Announcement, the transferee made a very strict and demanding requirements. For example, the transferee should be valid for more than 50 years of domestic and foreign enterprises, and now listed companies, the registered capital of not less than 5 billion yuan (or equivalent foreign currency); with LNG ship construction technology, must Has the right to use the Moss and Film-type tanks and provide proof of the right to use the technology. From the past five years to the present, the construction of the Moss LNG ship must be carried out continuously. , Can provide Moss LNG ship design drawings, and the implementation of construction-related technical support. In addition, the intention of the transferee also need a written commitment, with the general merchant ship new ship type development and basic design techniques, while the technical guidance and so on.

    It is not difficult to see that the transfer of the equity transfer of COSCO Shipbuilding Industry Company requirements for the transferee can be described as very harsh, seemingly tailored for a listed company. Regardless of the final buyers who, from the transferee's request alone can reflect two questions: First, Dalian COSCO Shipbuilding Industry Company hopes to build LNG ship and ordinary merchant technical support; Second, through the sale of shares to obtain a large number of Of the funds.

    At present, the market demand is not enough to support the huge shipbuilding capacity, and with the general decline in the price of new vessels, raw material prices, rising labor costs, shipbuilding costs are substantially increased, small and medium-sized shipping capital pressure to further increase the lack of orders, business will be more Difficulties, these factors are for large enterprise groups to implement mergers and acquisitions bring great opportunities.

    The next few years, it is to rely on market forces to eliminate backward production capacity, integration of resources, speed up structural adjustment, improve the industrial concentration of the good times. From a number of aspects, this round of shipbuilding industry mergers and acquisitions has been imperative, which is to build a strong competitiveness of large shipbuilding enterprise groups, driven by China's shipbuilding industry from big to strong the only way to change. Therefore, from the development point of view, the need for large-scale mergers and acquisitions to make full preparations, it is necessary to let go of ideas, bold practice, but also to fully study Japan and South Korea advanced shipbuilding enterprises mergers and acquisitions process of lessons learned to avoid or less Detours.

    Another point worth noting is that mergers and acquisitions often need a lot of money to operate, adequate funding is often the key to M & A success. At this point, the two major state-owned shipbuilding groups and local backbone enterprises can be based on the state of the shipbuilding industry mergers and acquisitions of the relevant industrial policy, for banks and other financial institutions to support financial support.

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