Zhejiang Shipbuilding, a bankrupt subsidiary yard of Sinopacific Shipbuilding, is going to lay off 300 employees in order to save costs as it looks to restructure.
The shipyard was declared bankrupt by a court in April 2016 and is currently in the middle of a restructuring. After the layoffs, employee numbers will be reduced to around 200 i order to maintain the shipyard’s basic operations.
Zhejiang Shipbuilding has been actively negotiating with shipowners and making efforts to complete all unfinished shipbuilding projects after it went into court receivership.
The shipyard delivered an offshore support vessel to domestic owner Shenzhen Huawei Offshore Shipping Transport in July, and it expects to deliver another subsea rock installation vessel for Van Oord before the end of August.
Dayang Shipbuilding, another subsidiary yard of Sinopacific Shipbuilding declared bankrupt in July and is currently working on a restructuring while offshore yard Sinopacific Offshore has reached a new restructuring investment agreement with CIMC Enric.