(Yicai) Dec. 13 -- China CSSC Holdings will find ways to increase production in order to meet surging orders for new vessels while at the same time keeping costs under control, The Paper reported today, citing the shipbuilding giant.

CSSC Holdings is running at full capacity, said an executive at the Shanghai-based company, which is the listed unit of China State Shipbuilding Corporation.

Orders for new ships around the world are on the rise and this will boost global shipbuilding capacities, industry insiders said. Most shipbuilders have orders lined up for the next three and a half years. The global shipbuilding market will stay active to meet these needs, and new vessel prices are set to remain high next year.

CSSC Holdings has been moving into high-end vessels and green transport in recent years. In the first three quarters, nearly 80 percent of its new orders were for high-end vessels with green vessels accounting for almost half, according to marine consultancy firm Clarksons.

The shift to medium-sized and high-end vessels will boost revenue even though the average deadweight ton of a single vessel is less, the executive said.

And at the Marintec China that was held in Shanghai earlier this month, CSSC Holdings reeled in a big order.

Two CSSC Holdings' units, Shanghai Waigaoqiao Shipbuilding and Guangzhou Shipyard International, penned contracts worth USD1.5 billion for giant Pure Car and Truck Carriers with Canada’s Seaspan Corp. and South Korea’s Hyundai Merchant Marine, CSSC Holdings said on Dec. 5. The amount is equivalent to 17 percent of the firm's revenue last year.

Editor: Kim Taylor