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Using the experience of Japan and South Korea to resolve ship industry overcapacity

In today's world economic downturn as a whole, the global shipbuilding capacity and shipping capacity "double surplus", such as crude oil and natural gas price decline unfavorable situation, ship industry dissolve excess capacity contradictions faced with multiple difficulties. South Korea, Japan's government, financial institutions and shipping enterprises to actively take measures to deal with shipping industry faced a crisis. This paper argues that, at present our country ships industry dissolve excess capacity contradictions faced "fundamental", namely, the eradication of difficult, digestion, transformation. Based on this, our country should draw lessons from foreign ship effective practice of excess capacity, actively explore the "double surplus" under the background of the solution: support companies to adopt "self-help" behavior, including compression capacity; Push shipping industry merger and reorganization; Encourage shipbuilding enterprises improve the research and development design and manufacturing capability of the ship.

By the world economic downturn, shipping demand, the global shipping and shipbuilding capacity capacity "double surplus", China's ship industry excess capacity still failed to fundamentally resolve the contradiction, since 2015, the industry profits, shipping enterprises loss serious, part of the shipping companies on the verge of bankrupt even, be badly in need of using the experience of developed countries, China's response.

Shipping industry dissolve excess capacity contradictions faced "fundamental"

(a) the eradication of difficult

"Capacity" is to resolve the most direct way, excess capacity contradictions and periodic "excess capacity" ship industry characteristics make it difficult to thoroughly in the shipbuilding enterprises "capacity". Ship industry in a cyclical downturn, the shipbuilding enterprises generally adopt closed slipway dock, layoffs to reduce operating costs, and by the government, Banks, blood transfusion to survive, but you don't like steel, cement and other industries "capacity" as the equipment completely blow up or completely demolished, once had the opportunity to receive orders can be "resurgence". 1 - April now, ship industry key monitoring of 51 shipbuilding enterprises to undertake new ship order 13.3 million deadweight tons, up 141% from a year earlier, 1-3 months to undertake new ship order 6.92 million deadweight tons, in April to undertake new ship orders combined close quarter, partial shut down of berth dock to return to work. Due to the lack of new growth, the world economy in a downward trend for the long term, the shipbuilding capacity and shipping capacity "double surplus" situation is very difficult to reverse in the short term, if this should remove the shipbuilding capacity increase in a new ship orders and the resurgence, unidentified truth capital continue to enter, will lead to China's ship industry overcapacity further intensify the contradictions.

(2) the digestive difficult by expanding the market demand to absorb excess capacity is an effective way to solve excess capacity contradictions, and ship industry global excess capacity and characteristics of China's ship industry structural overcapacity led to China's ship industry is difficult to digest excess capacity by means of expanding market demand. Shipping association studies indicated that the global shipbuilding capacity in 200 million deadweight tons, although our country has fallen to below 70 million deadweight tons, but the next 2 to 3 years new ship demand in 7000-80 million ton every year, only our production capacity can basically meet the demand of the new ship. And, China's ship industry product structure is low-value bulk carrier is given priority to, LNG ship hull form such as high added value is low. The current outstanding performance for bulk carrier ship industry capacity and overcapacity, the ship companies in Korea and Japan boat-shaped, with advanced technology and services in the international market competition advantage, it also makes our country is given priority to with bulk carrier shipping enterprises to exploit the international market is more difficult.

(3) the transition difficult

Enterprise transformation is an important way to resolve the excess capacity, and transformation in ship industry is relatively easy to exist the possibility of excess production capacity, several areas of the cause, which is mainly composed of shipbuilding enterprise is difficult to digest excess capacity through transformation of the ship. At present, the two ways of shipbuilding enterprise transformation, one is for Marine engineering equipment, the second is the development of LNG ship high value-added ships. Sea cargo by oil price falling, overcapacity has set in. The global Marine excess capacity and LNG ship market supply increases, the influence of LNG ship supply will also be a surplus. Such as Drury LNG market analysts pointed out that in the fourth quarter of 2015, 17% of the global liquefaction capacity idle.

Abroad to effective practice of excess capacity of the ship

(a) enterprise save his life

In the face of global ship serious overcapacity problem, foreign shipping companies to develop self-help plan or agreement, actively carry out save his life.

One is to sell non-core assets. The debt problem is the current impact a major hurdle for normal operation of the enterprise of the ship. Shipping companies in order to receive orders, to undertake the more lower down payment or even zero down payment orders, need to borrow guarantee the construction schedule, thus accumulated the massive debt. To avoid premature liquidation, weather the crisis, foreign shipping enterprises adopted to sell non-core assets as a way to raise money, to alleviate the debt crisis. South Korea's samsung heavy industries, for example, the sale of its securities held by samsung hotel and raise 220 billion won, hyundai heavy selling modern cars and KCC co, HyundaiAvancis capital as well as certain real estate and accounts receivable, won the 1.5 trillion won money, etc.

2 it is through the salary and job cuts, shutting down shipyard dock directly to reduce operating costs. Samsung heavy industries, for example, temporarily shut down part of the shipbuilding facilities and idle dock, and put forward the layoffs of 500 people; Hyundai heavy industries, the implementation of "early retirement", to the creditors' commitment to cut 2000 jobs by 2018, including about 25% of the executives, layoffs accounted for about 15.4% of the number of employees; Daewoo shipbuilding by 20% 30% pay cut, cut 2300 jobs, to save the labor cost 2, 3 trillion won, and to reduce the debt of 1.85 trillion won.

Third, relying on the advantage of design, technology, management, etc, to attract capital, mergers and reorganization of enterprise, in order to realize the complementary advantages. For example, Japan's mitsui shipbuilding with its advantage in aspects of design, technology, management, and the foundation of the Chinese group, scale advantage fully, to Shanghai shipyard. South Korean modern merchant ship freight company decided according to the ratio of 7:1, transferring equity free to Korea development bank, to achieve industrial bank management and capital support.

Fourth, actively develop new form and new technology, keep innovation and global competitiveness. For example, Japan nagaish holdings co., LTD established in the next three years plan, to meet the market demand of new ship type development; South Korea's hyundai heavy industries and Intel, Microsoft and the creative economy in open field and innovation center (DCCEI) and ulsan creative economy and the innovation center (UCCEI) cooperative development of innovative enterprises and institutions, such as intelligent ship; Hyundai heavy industries and ulsan economic revitalization of the courtyard, shipbuilding, Marine equipment research institute formed 10 institutions, such as technology innovation alliance, joint development is applied to digital radar of ship and Marine equipment, improve technology level of the ship.

(2) to seek support

Foreign shipping enterprises at the same time of self-help, is actively seeking government departments, financial institutions and other aspects of support, their governments, financial institutions, etc all attach great importance to the troubles of shipbuilding enterprises, take effective measures to support it.

At the government level, one is to provide financial aid. The south Korean government through fiscal funds and central bank financial direct aid to the troubled shipbuilding and shipping industry. India's government is the direct funding, funding for domestic shipyard for infrastructure construction. The second is to increase support industrial policy orientation. To implement a ship industry innovation policies such as Japan, from improving the capacity of products and services, develop business, promote shipbuilding ability and strengthening human resources promote four aspects, boosting Japanese shipping industry to further innovation and stronger; Japanese land transport by introducing the productivity of Marine transportation infrastructure plan to reform, strive for shipbuilding industry market share from 20% to 30%; South Korean trade, industry and energy for the five-year plan (2017-2017), a $20 million research vessels and Marine industrial equipment manufacturing of 3 d printing and 3 d, and adopts a special employment support industry system for shipbuilding industry, including extending unemployment benefits paid, reemployment training, etc. 3 it is to set up a special fund, and through the bank financing support for the shipbuilding industry. , for example, the south Korean government and central bank announced on June 9, will set up a fund, the scale of 11 trillion won to buy Korea development bank and Korea export-import bank of hybrid securities issued, the bonds will provide funding for shipbuilding enterprises in difficulty. Four is supplemental budget funds, completes the employee allocation and new jobs. Such as South Korea the Treasury 11 trillion won the budget projects, seeking to create 68000 new jobs; Invest 200 billion south Korean won to support as many as 40000 to 50000 is expected to shipbuilding industry, unemployed personnel transferred to accept vocational training, etc. 5 it is through the government procurement to increase support for small and medium-sized enterprises. Such as the south Korean government in order to increase the order of the shipbuilding enterprises and guarantee ship business operation, to small and medium sized shipyard, directional issued the coastguard vessels, 61 public ship orders for procurement.

In terms of financial institutions, is a creditor. In order to enhance the liquidity of daewoo shipbuilding, the Korea development bank creditor inject 4.2 trillion won, and offered a $50 billion advance for daewoo shipbuilding payment bond. The second is to provide financing support or funding support. South Korea local Banks and private Banks to provide financing support for daewoo shipbuilding about 1 trillion won, south Korean import and export bank provide 300 billion won into east shipbuilding capital support; French agricultural bank, the bank of Japan's mitsui joint venture was established according to the investment proportion of 50:50, as Japan and the world shipbuilding, shipping companies expect $1 billion in syndicated loans. Three is to financial regulation. The financial services commission (FSC) said will be strict supervision of the shipbuilding industry restructuring, ensure the smooth implementation of the loss of the ship enterprise restructuring plan.

China's ship industry to resolve contradictory countermeasure thought with excess capacity

(a) support including compression capacity of enterprises to "save" behavior

Shipping enterprises in our country is facing the survival of the same problem with Japan and South Korea enterprise, can consider to draw lessons from Japan and South Korea shipping enterprise save way, guide the domestic shipping companies to develop "save project", combined with its own characteristics, the enterprise of self-help plan should include a thorough eliminate backward production capacity, compression excess capacity as well as the content, the government may establish a special fund, through the training and employment opportunities, etc to help enterprises solve encountered in the process of compression the excess capacity of the worker housing etc.

(2) to promote industry merger and reorganization of the ship

Compared with Japan, South Korea, China's ship industry concentration degree is low, middle and small shipping enterprises is more, need to guide the orderly restructuring shipbuilding enterprises, through the reorganization of the compression capacity and improve concentration. Can use for reference the experience of South Korea, shipping companies, financial institutions, government departments to jointly participate in shipbuilding enterprise restructuring, put forward by shipping enterprise restructuring, financial institutions to provide credit support, financial institutions and government departments to monitor restructuring of every link. At the same time, the research set up the enterprise restructuring, the industry restructuring fund support ship and encourage private capital to participate in the restructuring of the ship.

(3) encourage shipbuilding enterprises to improve the research and development design and manufacturing capability of the ship

Focus on heavier taxation, public funding to support, encourage enterprises to develop energy efficient and environmentally friendly new ships, hydrogen energy carrier, the new oil ship, underwater robots, windmill installation, integrated supply ships, oil and gas resources development of ship, etc. To strengthen the construction of related scientific research and experiment of the infrastructure, support domestic enterprises having conditions of purchase of foreign advanced technology related businesses. Encourage enterprises to import new equipment such as robot, using the Internet, big data, such as technology, optimizing production build process, backward production equipment. (source: China economic times)