About the deal
The acquisition of the bankrupt yard will allow Nantong Xiangyu to enlarge its production capacity at a time when new building demand is high.
Jiangsu Hongqiang Ship Heavy Industry, located at Qidong, Nantong, Jiangsu province, suspended operations in 2018 and declared bankruptcy earlier this year.
Nantong Xiangyu successfully acquired assets of Jiangsu Hongqiang at a total price of RMB440 million
Assets include a terminal, three docks between 50,000 tonnes-class and 100,000 tonnes-class, 682 meters river berth of the Yangtze river as well as manufacturing equipment and patented products.
The new assets from Jiangsu Hongqiang are expected to increase the 60% production capacity of Nantong Xiangyu per year.
Nantong Xiangyu currently has eighty-two orders on hand. The shipyard’s number of vessel deliveries is expected to hit a new record this year.
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Source: Seatrade Maritime
