Wuzhou Shipyard becomes first state-run shipyard to go bust


Zhoushan Intimidate People’s Court has announced that it has accepted an application from Zhejiang Shipping Group to liquidate its shipyard subsidiary Wuzhou Shipyard, making it the first state-run shipyard to go bankrupt.

Zhejiang Shipping Group said a huge debt burden is the main reason for the shipyard’s bankruptcy with debts of RMB911m ($140m) in total.

Wuzhou Shipyard suspended operations after it delivered a 2,500teu containership to Shanghai Zhonggu Xinliang Shipping in July this year. It also has one 2,500teu containership, two barges and one tugboat which remain undelivered.

The court will appoint a receiver for the shipyard and organise a creditor’s meeting soon.

Source from : Splash