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Largest shipyards bankrupt? Hanjin affiliate in the Philippines, China's Zhejiang Haizhou

Largest shipyard in Southeast Asia files for court receivership
Sam Chambers January 9th, 2019

The largest shipyard in Southeast Asia by area has filed for court receivership. HHIC-Phil, the Philippines affiliate of South Korea’s Hanjin Heavy Industries and Construction, becomes the latest victim of the prolonged downturn in shipbuilding.

The huge yard in Subic Bay delivered its first ship in 2008 and is capable of building the largest ships afloat having delivered a series of 20,000 teu ships in the past year.

Its orders in recent years have been at a noticeable discount to most Asian peers.

HHIC-Phil’s parent, Hanjin Heavy, has been going through a tricky restructuring since 2016. Its main yard in Busan is South Korea’s oldest. It quit commercial shipbuilding on home soil three years ago, switching that business to the Philippines.

HHIC-Phil’s orderbook is extensive having managed to fill out its slots through to the end of next year.

Haizhou Shipyard files for bankruptcy
Jason Jiang January 9th, 2019

Zhejiang Haizhou Shipyard, one of the largest ship repair yards in China, has filed for bankruptcy.

The yard has been suffering financial difficulties for the past few years and has been involvied in a large number of financial disputes with creditors.

In the first creditors’ meeting, 396 creditors of the shipyard requested repayment of RMB3.36bn ($490m) of debt in total.

A local court also put the shipyard on a credit black list due to its inability to comply with court orders.

Currently Haizhou Shipyard is looking for new investors to take over the yard. At its peak, Haizhou Shipyard repaired over 200 ships in 2015.