Nantong Xiangyu Shipbuilding & Offshore Engineering is the latest shipyard in China to expand its capacity, riding on the shipbuilding boom.
The state-owned shipbuilder said it has bought the collapsed Jiangsu Hongqiang Ship Heavy Industry for CNY 440m ($62m) through an auction sale.
Nantong Xiangyu estimates that having a second shipyard will increase its production capacity by 60%.
Located at Qidong in Jiangsu province, the Hongqiang facility provides its new owner with three slipways capable of building vessels of between 50,000 dwt and 100,000 dwt.
Hongqiang was established during the 2004 shipbuilding boom. By 2016, it had delivered around 120 small to midsize vessels, including bulkers, stainless steel chemical tankers, general cargo ships and tugboats.
Hongqiang was declared bankrupt in early 2023 by the Qidong Municipal People’s Court, although its shipbuilding activity had halted in 2017 when its owner, Taishan Petrochemical Group, stopped providing financing.
Nantong Xiangyu was founded at the end of 2016 when an alliance of three companies took over the collapsed Nantong Mingde Heavy Industry.
Equipped with one dry dock and two slipways, Nantong Xiangyu can build up to 28 vessels a year.
As a medium-size shipbuilder, it focuses on ultramax and kamsarmax bulk carriers, along with stainless steel chemical tankers.
Clarksons’ Shipping Intelligence Network shows Nantong Xiangyu to have close to 80 newbuildings on its orderbook.
Companies that are building ships there include Cardiff Marine, Doun Kisen, NYK, Stolt Tankers and Densay Shipping.
Nantong Xiangyu has been boosting its capacity in recent years by cooperating with less busy yards, such as Sainty Shipbuilding and Taizhou Kouan Shipbuilding, to build ultramax bulkers.
Although its cooperation with Sainty ended some time ago, the partnership with Taizhou Kouan continues.
The shipbuilding boom has triggered Chinese shipbuilders to reactivate yards such as Samjin Heavy Industries. Established shipbuilders including New Times Shipbuilding, Yangzijiang Shipbuilding and Hengli Heavy Industry have expanded their capacities by investing in new dry docks.
