The bankrupted Chinese shipyard Mingde Heavy Industry was acquired by Nantong Xiangyu Offshore for 83.8 million USD, through online auction on Taobao. The starting price was lowered after several failures and no registered bidders for acquisition of the bankrupted shipbuilder. The buyer Nantong Xiangyu Offshore is a joint venture between state run logistics and supply chain company Xiamen Xiangyu Group (36%), Nantong Wangzhe Shipbuilding (30%) and China Ocean Industry (24%), while the remaining 10% are held by trust fund of the three companies.
Xiamen Xiangyu Group, via the joint-venture, bid for the assets of Mingde and confirmed its purchase. The shipbuilder’s assets on sales include land use rights, property, construction equipment, raw materials, machinery, vehicles, electronics and office equipment, and Nantong shipyard dock and two piers.
Xiangyu Group announced that it plans to expand its petrochemical transportation business by building some tanker vessels at Mingde’s shipyard.
The severe slump of the shipbuilding industry led to Mingde applying to a local court for bankruptcy on 31 July 2016, after it failed to attract new investors and did not submit its restructuring plan.
Xiangyu Group is a wholly state-owned enterprise with its headquarters in Xiamen. It has over 200 investment companies，160 wholly-owned companies and investment holding companies as well as 7,000 employees.