Nantong Xiangyu Shipbuilding & Offshore Engineering Co., Ltd. (XMXYG SOE) announced that on August 21st, XMXYG SOE successfully bid for the core assets of Jiangsu Hongqiang marine Heavy Industry Co. This move will open up a new construction base for XMXYG SOE, boosting the company’s production capacity and product optimization, and better seizing the opportunities in the shipping market. According to the estimation, the annual production capacity of XMXYG SOE is expected to increase by 60% after the project is put into production.
According to the information on the official website of the Alibaba Assets Judicial Auction Platform, the final price of the auction was CNY440 million (about US$61.6 million).
Docks, quays and shoreline resources are the “lifeline” for the survival and development of shipbuilding enterprises. Jiangsu Hongqiang marine Heavy Industry is located in Qidong City, at the mouth of the Yangtze River and across the river from Shanghai Chongming Island. The bidding assets include 56,352.42 square meters of housing buildings, one wharf, three 50,000-100,000-ton ship slipways, 682.3 meters of Yangtze River shoreline usage rights and related equipment and patents owned by the company.
Mr. Lin Junjie, Vice President of Xiangyu Group and Chairman of XMXYG SOE, said that after the bidding, the repair and construction work of the factory was immediately put on the fast track. The company will join hands with Qidong Municipal Government to fully invest in the project to ensure that it will be put into operation as soon as possible.
As the controller of XMXYG SOE, Xiangyu Group will also actively fulfill its role as a state-owned enterprise and fully support XMXYG SOE to grow bigger and stronger, so as to add bricks and mortar for the construction of a strong marine country.
Since 2023, with the shipbuilding industry entering into a new boom cycle, XMXYG SOE has entered into a prosperous period of order receiving and production. Up to now the company’s hand held orders amounted to 82 units, the furthest delivery date of order has been arranged to 2028. Meanwhile, the production management continues to be optimized, the construction speed continues to improve, the production cycle has reached the domestic first-class level, and the number of deliveries for the whole year is expected to reach a record high.
After bidding for the core assets, XMXYG SOE can further optimize the resource synergy and capacity utilization of its production bases, and effectively consolidate and give full play to the company’s leading advantages in its two key products, namely bulk carriers and stainless steel chemical tankers.
