Merger of 2 CSIC units to improve efficiency

State-owned China Shipbuilding Industry Corp or CSIC, the primary contractor for China's naval force, is transferring the assets of its subsidiary Qingdao Beihai Shipbuilding Heavy Industry Co to Wuchang Shipbuilding Industry Group Co, another of its subsidiaries, to enlarge the latter's capacity in building both military and commercial vessels.

The Hubei-based Wuchang Shipbuilding is one of China's manufacturing bases to build conventional submarines and frigates, as well as maritime defense equipment and law-enforcement vessels.

Subsequent to the asset transfer, it has restructured the management of Shandong-based Qingdao Beihai Shipbuilding, whose main business is ship maintenance and building bulk ships with an annual capacity of 3 million deadweight tons. It is also capable of repairing 212 vessels per year.