Steering Yangzijiang to calmer waters amid rough weather

AS THE Chinese saying goes, every crisis presents both danger and opportunity. For Yangzijiang Shipbuild- ing chairman Ren Yuanlin, the current crisis engulfing the Chinese shipbuilding industry may well open up another window of opportunity for further business expansion as rival yard operators drop out of competition.

The straight-talking YZJ chairman has never flinched from discussing the shipbuilding crisis in his home country. On the contrary, he has on more than one occasion publicly acknowledged that China's shipbuilding is set to enter a protracted winter that will last at least three years.

Against the headwinds of overcapacity in shipbuilding and limited newbuilding demand across most maritime sub-sectors, the number of Chinese shipyards in operation has already shrunk to about 300 from 3,000 five years ago. Mr Ren projects this number could further decline to under 50 in another three years.