Chinese private shipbuilder Zhejiang Ouhua Shipbuilding has filed for bankruptcy with Zhoushan Intermediate People’s Court.
Splash reported in January that the shipyard had been dealing with a financial crisis and was having difficulties paying employee salaries.
Ouhua Shipbuilding only secured a handful of orders last year, four 2,800 teu boxships from Arkas, six MPPs from Splieoff and two 2,700 teu boxships from Cape Shipping.
Chinese private shipyards have been struggling to survive the past few years with many of them going bankrupt. According to a recent research report by Clarkson, since the start of 2009 the number of active yards in China has fallen from 391 to 112, the lowest level since 2003, while the number of Chinese independent yards also has decreased sharply from 305 to 50.
State-backed yards now account for 40% of the active yards in China, their highest share since 2000.
Meanwhile, consolidation among Chinese independent yards has increased with Yangzijiang Shipbuilding and New Times Shipbuilding accounting for around 70% of tonnage ordered at domestic independent yards.