Singapore-listed Avic Maritime announced that it has appointed a liquidator to voluntarily wind up its 79.57% owned subsidiary Avic International Marine Engineering, following a series of earlier voluntary liquidation of several other subsidiaries.
The privately-owned Chinese shipbuilding group announced that “the liquidation was undertaken as part of the intragroup restructuring exercise” that has been ongoing since August 2016.
Some other subsidiaries of the group that have been liquidated included Avic International Ship Development, Kaixin Singapore, Avic Tidestar Fast Offshore, Avic International Ship Engineering and AIME (Lux).
The group is primarily engaged in shipbuilding business, as well as secondary activities in project management and consultancy, design and engineering, and ship trading.
Avic Maritime’s intragroup restructuring exercise commenced amid a protracted downturn of the shipbuilding industry, particularly in China, due to excessive shipbuilding capacity and reduced newbuilding orders.
The group’s shipyard subsidiaries Avic Dingheng Shipyard is sitting on an orderbook of 19 vessels and Avic Weihai Shipyard has an orderbook of four ro-pax ferries.
In 2016, Avic Maritime reported a full year loss of RMB27.1m ($3.9m) compared to the loss of RMB8.5m in 2015.