China Revives Bankrupt Shipyard Under New Ownership
05.01.2026
China Revives Bankrupt Shipyard Under New Ownership
China’s shipbuilding sector continues to expand capacity by restarting assets shut down after the previous downturn, rather than building new facilities from scratch.
A recent example is Nanjing Dongze Shipyard on the Yangtze River, which has resumed operations following a court-ordered sale and a change of ownership. The yard, previously independent and focused on small cargo vessels, ceased operations in 2017 and accumulated around $50 million in debt by 2025, entering bankruptcy reorganization.
The asset was acquired by a subsidiary of China Merchants Shipbuilding Industry Group, which assumed $33 million in liabilities. In return, the buyer gained ready-made infrastructure:
- two slipways up to 50,000 dwt
- production facilities
- valuable riverfront access on the Yangtze
These assets complement the capacity of the nearby Jinling Shipyard.
Under its new brand, the shipyard has already launched its first newbuild — the chemical tanker SC Emerald.
The deal highlights China’s current industry logic: rapid and cost-effective restoration of existing capacity instead of greenfield construction. With China accounting for over 50% of global shipbuilding and maintaining a solid orderbook, this approach delivers a strong competitive edge.
China Merchants Shipbuilding Industry Group is part of the state-owned China Merchants Group and continues to strengthen China’s global shipbuilding position through consolidation and asset reactivation.