The acquisition deal was done through China’s giant online retail platform Taobao, where the Chinese shipbuilder Mingde had auctioned its assets since December 2015.
Xiangyu Group, via its subsidiary, bidded for the assets of Mingde and confirmed its purchase on Saturday. Mingde’s assets on sales include land use rights, property, construction equipment, raw materials, machinery, vehicles, electronics and office equipment, and one shipyard dock and two piers.
Mingde had first auctioned its assets at a price of RMB1.59bn in December last year, and the lack of buyers has led to Xiangyu Group’s eventual winning bid at the lower price of RMB576m.
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 announced that it plans to expand its petrochemical transportation business by building some tanker vessels at Mingde's shipyard.
Back in August 2015, Xiangyu Group and Shanghai Dingheng Shipping jointly approach Nantong Tongbao Shipbuilding to build eight stainless steel chemical tankers.
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