Zhejiang Ouhua Shipbuilding files for bankruptcy

Zhejiang Ouhua Shipbuilding files for bankruptcy

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.

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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