BUSINESS

China’s Once-Largest Private Shipyard Gets New Lease on Life

Published: Feb. 9, 2026 3:55 p.m. GMT+8

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The Rongsheng shipyard in Nantong, Jiangsu province, on Feb. 3. Photo: VCG

China’s onetime largest private shipyard is poised for a revival, as Wuhu Shipyard Co. Ltd. plans to lease the long-idle facilities to expand production, sources told Caixin.

The arrangement allows Wuhu Shipyard, the largest shipbuilder in Anhui province, to expand its capabilities to construct vessels exceeding 100,000 deadweight tons (DWT). The deal highlights efforts to bring “zombie” industrial assets back online as global demand for new vessels fills order books at major shipyards to capacity.

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Wuhu Shipyard plans to lease and revive the large, long-idle Rongsheng shipyard in Nantong, increasing its vessel production capacity above 100,000 DWT.
This move aims to capture orders, including from Vale SA, amid high global demand and saturated major shipyards, with local government support.
Rongsheng shipyard, once China’s largest with 40,000 employees, shut down in 2015 due to debt; previous revival attempts failed until this leasing arrangement.

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Who’s Who

Wuhu Shipyard Co. Ltd.: Wuhu Shipyard Co. Ltd. is the largest shipbuilder in Anhui province, traditionally focusing on vessels under 80,000 DWT. To expand its capabilities and build larger ships exceeding 100,000 DWT, Wuhu Shipyard plans to lease facilities from the former Jiangsu Rongsheng Heavy Industries Co. Ltd. in Nantong. This strategic move aims to enhance its market competitiveness and capture orders for ultra-large carriers, despite some industry doubts about its technical maturity.

China Huarong Energy Co. Ltd.: China Huarong Energy Co. Ltd., previously known as Jiangsu Rongsheng Heavy Industries Co. Ltd. (Rongsheng Heavy Industries), owns a long-idle shipyard in Nantong. This former largest private shipyard in China is poised for revival as Wuhu Shipyard Co. Ltd. plans to lease its facilities to expand production, particularly for large vessels. Rongsheng's previous attempts at revival failed due to debt and market downturns.

Jiangsu Rongsheng Heavy Industries Co. Ltd.: Jiangsu Rongsheng Heavy Industries Co. Ltd., formerly a dominant private shipyard in China, ceased operations over a decade ago due to a market downturn and significant debt. Its facilities are now being leased by Wuhu Shipyard Co. Ltd. to expand production. This move aims to reactivate the "zombie" industrial asset and allow Wuhu Shipyard to construct larger vessels, leveraging Rongsheng's dry docks and production areas.

Nantong Ronghuang: Nantong Ronghuang is a partner firm to Wuhu Shipyard, handling steel structure manufacturing and pre-processing. Sources suggest this company is linked to Zhang Zhirong, the founder and former controller of Rongsheng Heavy Industries.

Vale SA: Vale SA is a Brazilian mining giant. The company is preparing to commission dozens of large carriers, ranging from 210,000 to 320,000 DWT. Wuhu Shipyard is targeting these orders due to the saturation of major shipyards capable of building such large vessels.

Bank of China Ltd.: Bank of China Ltd. was a major creditor involved in the debt-for-equity swap that Rongsheng Heavy Industries underwent after its cash flow rupture in 2015. This was part of a massive restructuring effort for the struggling shipyard.

China Minsheng Banking Corp. Ltd.: China Minsheng Banking Corp. Ltd. was a major creditor involved in the debt-for-equity swap for Jiangsu Rongsheng Heavy Industries Co. Ltd. (formerly China Huarong Energy Co. Ltd.) during its restructuring in 2015, following a cash flow rupture.

China Forestry Group Corp.: China Forestry Group Corp. considered acquiring Rongsheng's idle shipbuilding assets. This planned acquisition was one of multiple attempts to revive the facilities after Rongsheng faced a market downturn and massive debt, ultimately leading to its shutdown over a decade ago. However, this attempt, like others by Rongsheng's original management, ultimately failed.

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What Happened When

Over a decade ago (before 2015)：: Rongsheng shipyard was shut down due to a market downturn and massive debt.

2015：: Rongsheng shipyard experienced a cash flow rupture and underwent massive restructuring, including overseas oilfield services expansion and a debt-for-equity swap with major creditors.

January 2026：: Wuhu Shipyard established a project team in Nantong and committed significant capital and personnel to prepare for production at the Rongsheng facilities.

2026：: Nantong local government supported Wuhu Shipyard's project to reactivate the Rongsheng facilities.

2026：: Wuhu Shipyard aims to target orders from Vale SA for large carriers, seeking to capture lucrative contracts as major shipyards are saturated.