China's Largest Shipbuilder Seeks Nation's Cities Aid

China Rongsheng Heavy Industries Group Holdings Ltd. (1101) is in talks with two coastal cities and government departments to secure financial assistance, as the nation’s shipowners association forecast a slump in vessel orders will run through next year, reports Bloomberg.

The country’s largest shipyard outside state control is in discussions with Rugao and Nantong cities and some ministry-level departments related to the shipping industry, according to Bloomberg, citing Rongsheng spokesman William Li.  The company said July 5 it was seeking financial assistance from the government after a plunge in orders forced it to reduce production and “restructure” its workforce.

Rongsheng and other Chinese shipmakers are struggling as a global vessel glut makes orders more difficult to win and pushes down prices.

Source: Bloomberg