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.