Taiwan: Shipbuilding market continues decline

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Taiwan's shipbuilding market is still depressed despite recent economic growth and might not show a strong rebound until 2012, Taiwan's leading ship manufacturer said Wednesday.

Industry prices which have fallen sharply since the economic recession took hold in 2008, have only recovered to 80 percent of pre-crisis levels, said Tang Tay-ping, chairman of the state-owned shipbuilder, CSBC Corp.
Taiwan has failed to provide better mortgage conditions for foreign companies and many buyers are still delaying taking delivery of new vessels to avoid having to make early payments, Tang said, adding that those factors are hampering the market growth.
As a result, CSBC will increase its production capacity by 50 percent to meet the challenges of the sluggish market, Tang said.
Although Japan has been sent reeling by the March 11 earthquake, tsunami and nuclear crisis, its shipbuilding industry has not been affected and remains one of the world's top three shipbuilders along with China and South Korea, Tang said, adding that his company's orders of raw materials and equipment from Japan have been unaffected.
The annual revenue of CSBC Corp. decreased by 16 percent to NT$26.1 billion (US$870 million) before tax, while the price per share has decreased from last year's NT$3.39 to NT$2.35.
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