- Xingmin diversifies into shipbuilding with a 30% stake in Zhejiang East Coast Shipbuilding and expansion plans.
- Cooperation with Wuhu Shipyard will result in the construction of 37 vessels from 2025 to 2029, stabilizing operations and profitability.
- The move aligns with a broader industry rebound, with Chinese shipyards reactivating and expanding production.
Xingmin, an automotive wheel manufacturer, is diversifying into the shipbuilding sector. It will progressively acquire dockyard assets to establish a foothold in this expanding market, reports Seatrade Maritime.
Acquisition of Zhejiang East Coast Shipbuilding Stake
The company’s first step is a 30% acquisition of Zhejiang East Coast Shipbuilding from Yangfan Group. This marks Xingmin’s entry into shipbuilding operations.
To stabilize Zhejiang East Coast Shipbuilding’s performance, Xingmin has teamed up with Wuhu Shipyard to jointly construct 37 vessels between 2025 and 2029. The order includes bulk carriers, tankers, and multi-purpose vessels.
Vessel Types in Construction Plan
The planned vessels range from 89,000 dwt bulk carriers to 27,650 dwt multi-purpose ships. This diverse fleet is part of Xingmin’s efforts to secure profitability and operational stability.
Xingmin anticipates the new shipbuilding business to enhance overall operational performance and drive profit growth, strengthening its position in the market.
Capabilities of Zhejiang East Coast Shipbuilding
Located in Zhoushan, Zhejiang East Coast Shipbuilding can construct vessels up to 200,000 tonnes and produce over 1 million dwt annually.
China’s shipbuilding industry is rebounding after a long downturn. Reactivation of idle yards and expansion of existing ones reflects renewed optimism, offering Xingmin an advantageous market entry.
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Source: Seatrade Maritime
