06 Feb 2020
Posted in Press Release
Coronavirus is impacting China’s defense industry and shipbuilding
According to GlobalData’s coronavirus tracker tool the coronavirus is beginning to have an impact on Chinese defense companies and shipbuilders in Wuhan.
William Davies, Associate Aerospace, Defense and Security Analyst at GlobalData, comments: “The coronavirus has the potential to slow the delivery of key projects such as China’s third aircraft carrier and new fighter jets.”
Jiangnan Shipyard, the largest modern shipbuilding base in China, has extended the Lunar New year and advised any workers who traveled during the holiday to stay home from work for 14 days. China’s naval development plan includes the procurement of a third aircraft carrier, with up to six planned, and this delay could have a significant effect on carrier delivery timelines.
Also affected are the producers of the J-15 fighter jet Shenyang Aircraft Corporation who have taken similar measures to help contain the coronavirus.
Companies affected in Wuhan include Wuchang Shipbuilding Industry Group, which produces Submarines for the Chinese Navy and Naval University of Engineering, which produces a variety of underwater technologies for the Chinese Navy.
Davies concludes: “Whilst this delay will only have a minor impact in the short term, if the crisis continues and companies are forced to halt production for a longer period then this could have long term impact on China’s shipbuilding timelines.
“As the virus develops further, it will almost certainly affect nearly every industry.”