China Rongshengi

China Rongsheng Heavy Industries Group is China’s largest private shipbuilder. In July 2013 it announced that it had sought financial help from the Chinese government and big shareholders after laying off some workers and delaying payments to suppliers.


Embattled shipbuilder China Rongsheng Heavy Industries said it had appointed an independent valuer to assess the assets held at its main production base in Jiangsu province.

China Rongsheng Heavy Industries Group Holdings signed a US$1 billion contract with a European shipowner to build up to 36 bulk carriers within the next three years.


Deserted flats and boarded-up shops in the Yangtze River town of Changqingcun serve as a blunt reminder of the area's reliance on China Rongsheng Heavy Industries Group, the country's biggest private shipbuilder. Like Rongsheng's shipyards, the area is struggling to survive.

The severe cash position at China Rongsheng Heavy Industries has raised doubts about whether the mainland's largest private shipyard can continue to operate despite the raising of 1.4 billion yuan (HK$1.76 billion) in convertible bonds earlier this month.

China Rongsheng Heavy Industries is in talks with two coastal cities in Jiangsu and government departments to secure financial assistance, as the mainland's shipowners association forecast that a slump in vessel orders will continue next year.

China Rongsheng Heavy Industries' cry for help from the government and creditors to get it through a sharp downturn for shipbuilders is likely to fall on deaf ears, industry experts say.