Jiangsu Province of China turned out to plan to reduce 10m dwt shipbuilding capacity of the entire region over the next two years.

The Jiangsu Provincial Government announced this at a press conference held on November 28 and said the project to cut shipbuilding capacity is included in “Implementation Plan for Upgrading Shipbuilding Industry and Developing Offshore Facility (2013-2015)”, reported by Xinhua of China.

During a boom period of global shipping industry before and after global economic crisis, shipbuilding capacity of Jiangsu has rapidly developed and became China’s No.1 shipbuilding base, growing to 1/3 ratio of China and 1/10 of the world.

However, later on, with shipping industry condition suffering recession, structural overcapacity in shipbuilding industry has been pointed out as a serious problem.

An official at Jiangsu said that the aim of cutting 100m dwt of shipbuilding capacity was already decided in line with a current market trend and the government is only taking the lead of the decision.