SUMEC to take over Dayang Shipbuilding

SUMEC to take over Dayang Shipbuilding

SUMEC Group, a machinery manufacturer based in Jiangsu, is going to take over bankrupt Yangzhou Dayang Shipbuilding via a new joint venture company.

Sources tell Splash that a new company called Yangzhou Binjiang Shipbuilding will take over Dayang Shipbuilding through a restructuring and Chen Herong, former general manager of Dayang Shipbuilding, has been appointed deputy general manager of Binjiang Shipbuilding.

According to the company registration files, Yangzhou Binjiang Shipbuilding was established this month and it is jointly owned by SUMEC Group and Yangzhou Bincheng Investment.

SUMEC is major creditor of Dayang Shipbuilding and collaborated with the yard for the construction of 10 bulkers. So far, seven of the ten vessels have been delivered, while the construction of the remaining three 82,000 dwt bulk carriers has been suspended.

Dayang Shipbuilding, a subsidiary yard of Sinopacific Shipbuilding, was declared bankrupt by a court in July 2017 due to a long standing debt crisis. The yard currently has around RMB4.55bn ($710m) of debts with creditors. The parent group of Sinopacific Shipbuilding, Evergreen Holding, is also in deep financial trouble with total liabilities amounting to nearly RMB7bn.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.

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