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2007 April 12   13:12

China to implement new rules for shipbuilding sector this year

China will implement its first market access regulations for ship manufacturers from Oct 1 this year, in order to halt production of low-quality vessels.
Jin Zhuanglong, Vice-Minister of the Commission of Science, Technology and Industry for National Defence, said the shipbuilding sector, which had grown rapidly in recent years, urgently needed order and organisation.
China's shipbuilding firms ranked third in the world last year for the 12th straight year, according to Mr Jin. In 2006, the country's shipbuilding manufacturers yielded output of 14.52 billion deadweight tonnes (dwt), received 42.51 billion dwt of new orders and had a total of 68.72 billion dwt on their order books, accounting respectively for 19 per cent, 30 per cent and 24 per cent of the global market.
However, commission statistics show that of the nearly 3,000 shipbuilding enterprises in the country, only 431 are large ones. Booming market demand has boosted the growth of medium and small-sized firms.
The absence of market regulations had meant that a number of firms with poor facilities and poor management had emerged, Mr Jin said. The commission has closed 457 shipbuilding factories or workshops since 2005 in an effort to crack down on low-standard manufacturers.
The long-term aim of the new regulations is to improve management in shipbuilding firms in the country and improve the quality of vessels produced, said Mr Jin. The regulations set out detailed requirements in terms of production facilities, staff and management, according to a commission official, Ma Hengru.
The regulations, which classify civil shipbuilding enterprises into six major categories and 29 different types, define 'threshold' requirements for each type of enterprise while giving them room to grow, Mr Ma said.

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