Greater ChinaShipyards

Government urges Yangzijiang Shipbuilding to take over troubled Rongsheng

Shanghai: In one of the more dramatic shipyard consolidation moves so far for China, Beijing has moved to get the two largest private shipbuilders to merge.

Yangzijiang Shipbuilding, in a release to the Singapore stock exchange, has admitted it has held discussions over taking over Hong Kong-listed Rongsheng Heavy Industries, one of the most high profile casualties of the protracted shipbuilding downturn.

“Yangzijiang has been approached by relevant government agencies and company to explore the possibilities for Yangzijiang to consider an acquisition of some stake in the said company,” the shipbuilder said of its Rongsheng association.

No decision has yet been made whether to take over Rongsheng.

Shipyard consolidation is very much in the news in China with even a CSSC and CSIC merger being mooted.

In another release, Yangzijiang also announced that executive chairman and group ceo, Ren Yuanlin would step down and be replaced by his son Ren Letian, who has been with the company since 2006, most recently as general manager of Jiangsu New Yangzi Shipbuilding.

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Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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