Zhoushan Changhong takes over bankrupt Ouhua Shipbuilding

Zhoushan Changhong takes over bankrupt Ouhua Shipbuilding

The administrators of bankrupt Zhejiang Ouhua Shipbuilding have managed to sell the entire assets of the shipyard during a second round auction.

The assets were sold for a discounted price of RMB958m ($135.7m), after the first auction with a starting price of RMB1.19bn ($173m) failed at the end of July.

The assets sold include the shipyard’s land properties, shipbuilding equipment, inventories, as well as eight unfinished containerships with capacity ranging from 1,700 teu to 5,300 teu.

The buyer’s name was not disclosed in the auction. Splash understands that the buyer is Zhoushan Changhong International Shipyard, which is located only 40km away from Ouhua’s shipyard.

Starting off as a ship repair yard, Zhoushan Changhong has developed into a shipbuilding yard with a diversified shipbuilding portfolio in recent years. Currently the shipyard has six 2,700 teu boxships, six 1,800 teu boxships and two ultramax bulkers on its orderbook.

Last year, China International Marine Containers (CIMC) made a major investment into Zhoushan Changhong as part of an agreement to collaborate on 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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