Yangzhou Dayang Shipbuilding, an affiliate shipyard of Sinopacific Shipbuilding, is currently working on a restructuring plan.
According to minutes from an internal meeting, the shipyard is planning to set up a new company with SUMEC Group, a machinery manufacturer in Jiangsu as well as a major creditor of Dayang Shipbuilding, and box manufacturer CIMC in order to secure financing during the transition period of the shipyard. However, the plan is still pending approval from Sinopacific Shipbuilding.
The shipyard also plans to lay off about 600 employees. Sinopacific Shipbuilding is currently getting rid of its ship design department in Shanghai, letting go of more than 50 employees in the process.
A source at Dayang Shipbuilding told Splash that the shipyard currently owes more than RMB1bn ($153m) debt to SUMEC, and SUMEC offered to take over the yard with the debt, however, it didn’t reach an agreement with the management of Sinopacific Shipbuilding.
When contacted by Splash, an official at SUMEC confirmed that the company is involved in the restructuring of Dayang Shipbuilding, but the specific plan hasn’t been confirmed yet.
