The Ministry of Industry and Information Technology recently released the "Twelfth Five Year Plan" for the Development of the Shipbuilding Industry, which defined the main goals of China's shipbuilding industry development during the "Twelfth Five Year Plan" period, including: the shipbuilding bases around the Bohai Bay, the Yangtze River Delta and the the Pearl River Delta have become world-class shipbuilding bases, and the industrial concentration has increased significantly. The shipbuilding completion of the top 10 shipbuilding enterprises accounts for more than 70% of the total in China; The sales revenue of the marine engineering equipment manufacturing industry has reached over 200 billion yuan, with an international market share of over 20%.

The plan points out that during the 12th Five Year Plan period, the shipbuilding industry will enter a critical stage of transformation from large to strong, and the development of the industry will face important opportunities as well as severe challenges.

The plan proposes specific goals for the development of the shipbuilding industry during the 12th Five Year Plan period. Firstly, the comprehensive technological strength has jumped to the forefront of the world. The comprehensive competitiveness of mainstream ship types has significantly improved, forming over 50 well-known brand products that meet the latest international regulatory requirements and lead international market demand; Comprehensively breaking through the key technologies of high-tech ships, and entering the forefront of the world in the design and manufacturing capabilities of marine engineering equipment. The second is the optimization and upgrading of industrial structure. The shipbuilding bases around the Bohai Bay, the Yangtze River Delta and the the Pearl River Delta have become world-class shipbuilding bases, and the industrial concentration has significantly increased. The shipbuilding completion of the top 10 shipbuilding enterprises accounts for more than 70% of the total in China; The sales revenue of the marine engineering equipment manufacturing industry has reached over 200 billion yuan, with an international market share of over 20%; Establish several internationally competitive brand ship repair enterprises; In 2015, the sales revenue of the shipbuilding industry reached 1.2 trillion yuan, and the total export value exceeded 80 billion US dollars. Thirdly, there has been a significant improvement in efficiency and benefits. The industrial added value rate has increased by 3 percentage points compared to the end of the 11th Five Year Plan, and the average annual increase in labor productivity for all employees is 15%; The shipbuilding industry has comprehensively established a modern shipbuilding model, and the digital shipbuilding capability has significantly improved. The fourth is a significant improvement in supporting capabilities and levels. The sales revenue of the ship supporting industry has reached 300 billion yuan, and the average loading rate of localized ship equipment for mainstream ship types has reached over 80%, forming a group of internationally renowned brand products with intellectual property rights.

The plan also determined the industrial layout of key areas such as shipbuilding, marine engineering equipment manufacturing, ship supporting industry, and ship repair industry, and clarified the key development directions and major innovation projects of key areas such as ship manufacturing and repair industry, ship supporting industry, and marine engineering equipment manufacturing industry. To ensure the smooth implementation of the plan, the country will provide guarantees for the development of the shipbuilding industry through increasing investment in scientific and technological innovation, improving financial and tax support policies, promoting exchanges and cooperation, and strengthening industry management.

(From: Shanghai Securities News)