Zhejiang Shipbuilding, a subsidiary yard of Sinopacific Shipbuilding, has been declared bankruptcy by a local court.
Zhejiang Shipbuilding is currently looking for new investors to restructure the yard.
Previously Zhejiang Shipbuilding was a major state-run shipyard, and was acquired and restructured by Sinopacific Shipbuilding in 2003.
Yangzhou Dayang Shipbuilding, another subsidiary yard of Sinopacific Shipbuilding, is also working on a restructuring plan with machinery manufacturer SUMEC Group and box manufacturer CIMC.
Sinopacific Shipbuilding is currently in a financial crisis, and is getting rid of its entire Shanghai operations in order to cut costs.