CORONAVIRUS is beginning to have an impact on Chinese shipbuilders in Wuhan, according to analysts from GlobalData.
GlobalData analyst William Davies said the virus was already taking effect.
“The coronavirus has the potential to slow the delivery of key projects such as China’s third aircraft carrier and new fighter jets,” Mr Davies said.
GlobalData reported Jiangnan Shipyard, the largest modern shipbuilding base in China, had extended the Lunar New year and told workers who travelled during the holiday to stay away from work for 14 days.
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.
“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,” Mr Davies said.
“As the virus develops further, it will almost certainly affect nearly every industry.”