Zhoushan-based Zhejiang Zhenghe Shipbuiding, a subsidiary of Qingdao Zhenghe Shipping, has sent a notice to its employees that the shipyard has suspended operations and asking them to wait for further notice regarding unpaid salaries.
Over one thousand of employees in the shipyard haven’t been paid for several months. Some of them protested at a nearby highway toll station yesterday, in an attempt to get attention from the local government.
Zhenghe Shipbuilding has been suffering from financial issues since 2014, with its parent Zhenghe Shipping previously sued by employees for salary arrears. In May the shipyard applied with a court in Zhoushan for restructuring due to operating difficulties.
Zhenghe Shipbuilding currently has 17 undelivered orders including four 82,000dwt bulkers, ten 67,000dwt bulkers, two 67,349dwt bulkers and one dredger.