Creditor banks take over Ching Fu Shipbuilding

Creditor banks take over Ching Fu Shipbuilding

Ching Fu Shipbuilding, Taiwan’s largest private shipyard, has been taken over by creditor banks due to a financial crisis, following a loan fraud exposed at the shipyard in August.

Kaohsiung-based Ching Fu Shipbuilding, owned by Taiwan’s Wee Lee International Group, was the first private yard in Taiwan to build commercial ships including tankers and multipurpose vessels. In recent years, the shipyard switched its business to fishing vessels and navy ships.

In August, Chen Ching-nan, president of Ching Fu Shipbuilding was found to have used a fake navy ship contract to secure loans of TWD15bn ($498m) in total from a consortium of Taiwanese banks from 2014 to 2016.

According to prosecutors, the shipyard also set up a number of overseas shell companies for money laundering. Several senior officials of the shipyard have since been arrested.

Currently the creditor banks have taken over the financial management of Ching Fu Shipbuilding in efforts to maintain the business operations and avoid bankruptcy at the shipyard.

Jason Jiang

Jason worked for a number of logistics firms following his English degree, then switched this hands-on experience to writing and has since become one the most prolific writers on the diverse China logistics industry writing for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week. Jason’s access to the biggest shippers with business in China has proved an invaluable source of exclusives.

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