SSE To Review CSSC-CSIC Merger Forming World’s Largest Shipbuilder

China’s shipbuilding sector is poised for a major transformation. On July 4, the Shanghai Stock Exchange will convene to review a landmark merger between China State Shipbuilding Corporation (CSSC) and China Shipbuilding Industry Corporation (CSIC).

The proposed share swap and absorption merger would consolidate the nation’s top shipbuilding firms into a global powerhouse—positioning CSSC as the world’s largest listed shipbuilder.

Merger Structure and Share Swap Details

Under the proposed deal:

• CSSC will issue A shares to all CSIC shareholders via a share exchange.

• CSSC is the absorbing entity; CSIC will be dissolved and delisted.

• The exchange ratio is 1:0.1339, meaning each CSIC share can be swapped for 0.1339 CSSC shares.

• Post-merger, CSSC will inherit all of CSIC’s assets, personnel, contracts, and obligations.

Synergy and Strategic Importance

This merger aims to:

• Eliminate horizontal competition between CSSC and CSIC.

• Unify shipbuilding and maintenance operations.

• Strengthen CSSC’s role in high-end vessel manufacturing and global standard setting.

• Boost China’s global shipbuilding influence through brand consolidation under “China State Shipbuilding”.

Business Overlap and Industry Opportunities

Both companies are currently controlled by the China State Shipbuilding Group and operate extensively in:

• Military and civilian shipbuilding

• Marine development and defense equipment

• Deep-sea research, modification, and ship repairs

Their integration comes as the global shipbuilding market rebounds, with rising new orders and a growing backlog—offering a prime growth window for CSSC to capitalize on.

Future Outlook: The World’s Largest Shipbuilder

Once merged, the new CSSC will:

• Consolidate shipyards like Jiangnan, DSIC, Waigaoqiao, Wuchang, Guangzhou, and more.

• Strengthen concentrated shipbuilding capabilities and product specialization by yard.

• Lead the global order backlog, becoming a flagship listed company on a global scale.

• Promote brand value and enhance the premium positioning of Chinese-built vessels.

The CSSC-CSIC merger represents more than just corporate restructuring—it signals China’s ambition to dominate the global shipbuilding stage. By combining resources, capabilities, and strategic direction, the new CSSC is expected to shape not just the future of China’s maritime industry, but also set benchmarks for the international shipbuilding sector.