Greek Shipowner Doubts Major China Shipbuilder Can Deliver

China Rongsheng Heavy Industries Group, the country’s largest private shipbuilder, expects to report a substantial full-year loss just months after it appealed to the government for financial help, reports Reuters.

Analysts have indicated that the company could be the biggest casualty of a local shipbuilding industry suffering from overcapacity and shrinking orders amid a global shipping downturn.

Greek shipowner DryShips Inc. which has four dry-bulk carriers on order at the company’s shipbuilding subsidiary, Jiangsu Rongsheng Heavy Industries, has already questioned whether some of the ships on order at China Rongsheng will be delivered, which could hit its revenue and profitability next year, reports Reuters, citing Ziad Nakhleh, DryShips chief financial officer.

Source: Reuters