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 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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