China's shipbuilders suffer fall in new orders amid European debt crisis

By Kim Young-gyo
HONG KONG (Yonhap) -- Orders won by Chinese shipbuilders dropped almost by half in the first 10 months of this year primarily due to prolonged uncertainties in the global economy, an industry association said Friday.
The China Association of the National Shipbuilding Industry said its members clinched new orders totaling 29.75 million deadweight tons (DWTs) from January through October, which is roughly equivalent to 55 percent of the 54.62 million DWTs companies secured in the same period last year.
About 80 percent of this year's total orders secured took place by the end of July it said.
The association attributed the drop to ongoing turmoil in the global economy, including the debt crisis taking place in Europe.
"China's shipbuilders have built an annual production capacity of more than 100 million DWTs, but it is estimated that this year's new orders so far are less than one-third of that capacity," the association said.
"Moreover, 30 percent of the country's shipyards did not receive any orders in 2011.".
China rose as the world's top shipbuilder in 2009, outpacing South Korea in the number of new orders received because its builders were able to attract buyers with comparatively cheaper prices. (THROUGH ASIA PULSE)