China shipyards brace for leaner times as oil slump sours rig-building spree

Shanghai

FOR China's shipyards, the oil rig market that was supposed to be a blessing is in danger of becoming a curse.

As crude prices slide, oil producers are slashing new project spending. With a near 40 per cent slice of a global market worth tens of billions of dollars, Chinese rig builders that offered juicy financing terms and discounts to leapfrog Asian rivals in recent years are now the most exposed to a slowdown.