01 October 14

China Rongsheng expects to complete Jiangsu yard restructuring by June 2015

banner-portsBeijing – Shipbuilder China Rongsheng said it aimed to finish restructuring its Jiangsu shipyard’s assets by June next year, and was looking to speak to potential investors both locally and abroad after appointing an appraiser. Share trading in Rongsheng, the country’s largest private shipbuilder, has been suspended in Hong Kong since Aug. 29, as the government seeks outside support for the heavily indebted firm. Rongsheng is one of the largest employers in eastern Jiangsu province. Thousands of workers were laid off last year at the yard in Jiangsu, which builds Brazilian miner’s Vale mega-iron ore carriers, as Rongsheng flirted with insolvency. It later avoided this by agreeing with banks to extend its loan deadlines. The company said late on Monday that it had continued to receive support from its banks. Saving Rongsheng has become a test for China’s government, which has made reforming bloated industries one of its goals. The Jiangsu yard was recently put on a government “white list” of yards that it deems worthy of favourable policy support. Its restructuring also comes as the global shipping industry is trying to shake off an overcapacity glut that has hit newbuild orders. Rongsheng’s losses widened to 3.1 billion yuan ($504.53 million) in the first half, with current liabilities exceeding its assets by 12.3 billion yuan at the end of June, it said.

Source: The Medì Telegraph