Two small and medium-sized Chinese shipyards — Nantong Huigang Shipbuilding Co and Nantong Qiya Ship Engineering — are in a battle for survival, according to reports.
Nantong Qiya Ship has filed for bankruptcy although Nantong Huigang insists it is operating normally.
According to local reports, the Qidong-based Nantong Qiya Ship Engineering was put up for auction in September but failed to get a buyer.
“There are so many new shipyards that emerged in China during the market boom and there are many we have not come across,” said one broker.
Local reports describe Nantong Qiya as a small to medium-size yard with a 241- metre slipway.
In a separate development, Zhejiang-based Blue Sky Shipbuilding and Hengfu Shipyard are also said to have been declared bankrupt by local courts.
According to reports in the Chinese media, Nantong Huigang is being taken over by its creditors and is under restructuring.
Creditors are said to be planning to auction the yard to recover their losses.
It is said to have outstanding loans of around CNY 140m ($22m). Brokers in Shanghai and local sources say they are aware of the speculation over the future of Nantong Huigang.
However, a yard official says his company is not in any trouble.
Sources say Qidong-based Nantong Huigang has had difficulty delivering ships and has failed to win new orders.