Xingmin Intelligent Transportation Systems Group (Xingmin ITS), a company engaged in the research and development, production and sales of automobile steel wheels, has entered the shipbuilding industry.
In a regulatory disclosure, the Shenzhen-listed company announced that its wholly-owned subsidiary, Anhui Xingmin Haizhi Equity Investment Co, has acquired a 30% stake in Zhejiang East Coast Shipbuilding for CNY 360m ($50.5m).
Xingmin ITS states that its investment in Zhejiang East Coast is expected to generate returns, as it has already struck a five-year partnership with Wuhu Shipbuilding on the construction and sales of some of Wuhu’s newbuildings.
The cooperation with Wuhu will involve 37 newbuildings of seven ship types for delivery between 2025 and 2029.
They include eight 89,000-dwt bulk carriers, one 7,000-ceu pure car/truck carrier, one 14,600-dwt heavylift ship, six 38,000-dwt stainless steel chemical tankers, four 49,000-dwt petrochemical carriers, seven MR tankers and 10 multipurpose ships.
Xingmin ITS said Zhejiang East Coast is scheduled to deliver five newbuildings — four 89,000-dwt bulk carriers and one PCTC in 2025. The value of these five vessels amounts to $424m.
Zhejiang East Coast is one of the two shipyards under Yangfan Group. The other is Zhoushan Dashenzhou Shipbuilding.
Zhejiang East Coast operates a dry dock that is 400 meters long and 45 meters wide, capable of building two post-panamax bulk carriers at the same time.
The shipyard specialises in PCTCs and its annual shipbuilding capacity can reach 1.2 million dwt.
Brokers said Yangfan Group has been inactive in the shipbuilding market in recent years due to difficulties in securing refund guarantees from banks.
Clarksons’ Shipping Intelligence Network shows that Yangfan Group is only building two 40,000-dwt bulk carriers for Reederei Vogemann. The pair of handysizes is slated to be delivered this year.
Chinese news agencies reported that Zhejiang East Coast Shipbuilding has been operating at a loss for the past two years. The shipyard posted a loss of CNY 170m in 2023 and over CNY 90m between January and August 2024. Despite this, its net asset value is estimated at CNY 1.1bn.
Chinese automobile maker Chery used to be the major stakeholder in Wuhu. But it sold its 67% stake last year to seven shareholders, including Contemporary Amperex Technology and Ningbo Meishan Bonded Port Zone Wending Investment.
The sell-out resulted in Wuhu Yuanda Venture Capital becoming the major shareholder of Wuhumwith 29.01% stakes.
Located in Anhui province, Wuhu expanded its shipbuilding capacity early last year by taking over the land and facilities of Samjin Shipbuilding Industries Co in Weihai, Shandong province.
Wuhu’s orderbook stands close to 90 newbuildings, according to SIN. The newbuildings include PCTCs, MR tankers, chemical tankers, multipurpose heavylift ships among others.
