China Ocean Industry is looking to revive its shipbuilding business at its Jiangzhou Union Shipbuilding as part of a plan to improve its financial condition.
The company revealed that it is now actively discussing with the Jiangxi government and its long-term partner for the possibility of collaboration in shipbuilding with a hope to reactivate its shipbuilding production facilities.
In the meantime, the company is currently converting part of the yard into a port for mining ores in order to diversify its business. The construction work is expected to be completed in early 2021.
“The company believes that, with sufficient financial resources to be carried out by debt restructuring and fund raising, the group’s businesses are viable and sustainable,” China Ocean Industry said in a release.
“The global recession and the Covid-19 pandemic in 2019 and 2020 have unavoidably brought in adverse impact to the overall business environment and created hardship to the survival of companies. Nevertheless, with the current negotiation and cooperation with various parties, among others, creditors, governments and business partners, the Company is confident that the business operation and financial performance will gradually improve in the forthcoming future,” the company added.
Jiangzhou Union Shipbuilding suspended operations in 2018 due to financial difficulties, and China Ocean Industry also entered into a debt restructuring process in 2019.