China Shipyard Short of Cash

Dongfang Shipbuilding Group Co., Ltd. (Zongyang) the largest private shipyard in Anhui is preparing to sell off part of its assets, or intends to recapitalize.

In early May 2007, Zhejiang Dongfang Shipbuilding Group Co., Ltd. took note of Zongyang's unique resources along the Yangtze River and decided to found a shipyard in Zongyang. On December 6 of that year, Dongfang Shipbuilding Co., Ltd. with a total investment of 10.8 billion Yuan was founded. Chen Guojun, the only 22-year-old son of " Wenzhou shipping tycoon" Chen Kaotong, was appointed as the general manager.

On August 18 2011, Dongfang Shipbuilding was listed on the London Stock Exchange.

However, Dongfang Shipbuilding considered itself birth to have been "untimely", after listing as the global shipping and its manufacturing sector went into a slump. and on June 8 2012, Dongfang shipbuilding delisted on the London Stock Exchange.

Miss Cheng from FTI Consulting Company informed Anhui Province's reporter that Dongfang Shipbuilding Group Co., Ltd. intended to carry out recapitalization or sell part of its assets.