Greater China

Government to intervene to save Rongsheng

Hong Kong: The future of China Rongsheng Heavy Industries looks set to be as a state-run yard. Once China’s largest private Chinese yard, with a Hong Kong listing to boot, Rongsheng has been one of the major casualties of the shipbuilding downturn.

The company suspended its shares last month ahead of a possible restructuring. In its latest announcement Rongsheng said it had been "notified by a government authority that they are procuring an independent third party to consider and, if appropriate, to initiate a potential restructuring involving Jiangsu Rongsheng Heavy Industries".

Rongsheng’s Jiangsu yard was one of just 51 that made it onto Beijing’s white list of shipyards last week. Those making it onto the white list will receive policy support from government. The list is a way for China to handle its chronic shipyard overcapacity.

Shanghai Waigaoqiao Shipbuilding, part of state-run CSSC, has been widely tipped to be involved in the restructuring of Rongsheng, the irony being that same yard was where many of the original top management and workforce came from when Rongsheng was set up around nine years ago.  [08/09/14]

Back to top button