Zhejiang Ouhua Shipbuilding in financial trouble

Zhejiang Ouhua Shipbuilding in financial trouble

Zhejiang Ouhua Shipbuilding, a major Chinese private shipyard based in Zhoushan, is facing financial difficulties amid the continued gloomy outlook in the yards sector.

Sources told Splash that the financial situation at the shipyard is getting worse and the Zhoushan government is now temporarily helping the shipyard pay salaries to its employees. The shipyard stopped paying social insurance for the employees two months ago.

When contacted by Splash, an official at Ouhua refused to comment on the issue.

Ouhua Shipbuilding secured only a handful of orders in 2017, receiving orders for four 2,800 teu boxships from Arkas, six MPPs from Spliethoff and two 2,700 teu boxships from Cape Shipping.

In the past few years a number of shipyards from Zhoushan have gonebankrupt, including major yards Zhejiang Zhenghe Shipbuilding and Zhejiang Wuzhou Shipbuilding.

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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