China State Shipbuilding Corp (CSSC) is expanding production capacity. The state-run shipbuilding giant has just announced an RMB5bn ($690m) double acquisition – taking over the Shanghai assets of Tianjin Xingang Shipbuilding Heavy Industry, which comes with two massive drydocks as well as buying out Wuhan Wuchang Shipyard Hangrong Heavy Industry Equipment. The two acquisitions will add 2.4m dwt of extra annual capacity to CSSC Tianjin, a northern shipyard entity, whose facilities are fully booked through to 2028. Across China, shipyards are expanding and churning out ships on a scale not seen since 2008. In terms of newbuilding capacity, the latest estimate from broker Arrow puts shipbuilding capacity across the big three builder countries – China, South Korea and Japan – at 35.6m cgt per annum, a 20% increase year-on-year from 29.5m cgt a year ago, with the majority of this capacity expansion in China and South Korea. Chinese yards continued to hold the top rank as the most popular choice for bulker, tanker, container and gas newbuildings accounting for 441 orders placed in the first half of the year, around 66% of all newbuilding orders around the world, according to Rebecca Galanopoulos Jones, Veson’s senior content analyst. googletag.cmd.push(function() { googletag.display('div-gpt-ad-1_95_0_1_2'); });