Wuzhou Shipyard becomes first state-run shipyard to go bust

Wuzhou Shipyard becomes first state-run shipyard to go bust

Zhoushan Intimidate People’s Court has announced that it has accepted an application from Zhejiang Shipping Group to liquidate its shipyard subsidiary Wuzhou Shipyard, making it the first state-run shipyard to go bankrupt.

Zhejiang Shipping Group said a huge debt burden is the main reason for the shipyard’s bankruptcy with debts of RMB911m ($140m) in total.

Wuzhou Shipyard suspended operations after it delivered a 2,500teu containership to Shanghai Zhonggu Xinliang Shipping in July this year. It also has one 2,500teu containership, two barges and one tugboat which remain undelivered.

The court will appoint a receiver for the shipyard and organise a creditor’s meeting soon.

Jason Jiang

Jason worked for a number of logistics firms following his English degree, then switched this hands-on experience to writing and has since become one the most prolific writers on the diverse China logistics industry writing for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week. Jason’s access to the biggest shippers with business in China has proved an invaluable source of exclusives.

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