Shipbuilders Face Gloomy Prospects

(Beijing) – China's shipbuilders face a grim outlook in 2012, troubled by a lack of orders and excess capacity, an industry insider says.

The market's prospects are even worse than in 2008 when the financial crisis hit, Hu Keyi, chief engineer of major shipbuilder Jiangnan Shipyard (Group) Co., said on March 6.

Many buyers are asking shipyards to provide loans as a precondition for placing orders. Cash-strapped shipping companies also prefer to lease new ships, rather than buy them. All these are indicative of a hard time for the industry, Hu said.