An order for 50 super tankers worth $4.5 billion has been placed by a group of state-owned Chinese shipping companies. The recent move has given a financial lifeline to China’s struggling shipbuilders.
With the new order, the state companies have ventured in recent weeks which is a key element in Beijing’s attempt to revive a sharp economic slump. The government has also approved for the expenses in new steel mills, subway lines and other corporate and public works projects.
The recent move can also help China to gain more control over its energy supply chain by owning the giant ships. The ships can be used to import crude oil from the Middle East and anywhere else. Three of China’s biggest shippers, Dalian Ocean Shipping Co, China Shipping Group and China Merchant’s Group have ordered for the super tankers.
On the other hand the employees at the press offices of the three companies said that they would not confirm the report or give other details like where the tankers will be manufactured. Xia Xiaowen, an analyst for the China Shipbuilding Economy Research Centre said , “Small and medium-size shipbuilding companies are either out of business or near bankruptcy”. Xia also said that if the news of the new orders are accurate then it will be a good news for large manufacturers and will not have to worry about survival anymore.