Shanghai: Zhoushan-based Zhejiang Zhenghe Shipbuiding, the subsidiary shipyard of Qingdao Zhenghe Shipping, has announced that it has applied with a court in Zhoushan to restructure the shipyard due to operating difficulties.
Zhenghe Shipbuilding has been suffering from financial issues since 2014, and its parent Zhenghe Shipping was also sued by employees for salary arrears.
The shipyard has been included in the central government’s shipbuilding approved white list earlier this year.
Currently Zhoushan local government has established a risk management group to work with the shipyard and help the shipyard make a restructuring plan.
Zhenghe Shipbuilding said the shipyard has resumed normal operations and will present a complete restructuring plan to the court in the next three to five months.