Tuesday, September 26 2006 14:01 Hrs (IST) - World Time -

Beijing: China's shipbuilding industry is preparing to boost efforts over the next five to 10 years in order to shoulder its way into the elite club of independent mainstream shipbuilders.

According to the key development targets enshrined in the national medium- and long-term plan of the shipbuilding industry, ships would reach international levels of technological sophistication and the annual output would hit 17 million deadweight tonnes (dwt).

The annual production capacity of medium- and low-speed ship diesel engines is to go higher to meet domestic demand and more than 60 percent of ship equipment would be produced locally.

"To reach these objectives, we need to boost our capacity for technological innovation and not just be a low-cost labour force," said Zhang Xiangmu, a senior official with the Commission of Science Technology and Industry for National Defense (CSTIND), which administers shipbuilding affairs in China.

The industrial plan, published by CSTIND and the National Development and Reform Commission, China's industrial watchdog, Sep 18, covers policy, targets, technology development, product development, production modernisation, foreign cooperation and key projects.

China is the world's third biggest shipbuilder in terms of output, after shipbuilding giants Japan and South Korea.

In 2005, Japan and South Korea accounted for about 70 percent of the global shipbuilding market, while China sailed into third place with 18 percent.

In recent years, China has boosted shipbuilding output by more than 40 percent a year. In 2002-05, China quadrupled capacity from 3.5 million to 12 million dwt.