Chinese Car Parts Manufacturer Expands Into Shipbuilding

Chinese automotive parts manufacturer Xingmin Intelligent Transportation Systems (Xingmin ITS) is diversifying into the shipbuilding industry by acquiring a 30% stake in Zhejiang East Coast Shipbuilding.

Xingmin ITS, primarily known for producing steel wheels for cars and trucks, is investing RMB 360 million ($50.5 million) to purchase this stake in the shipyard, which is a subsidiary of Yangfan Group. Yangfan also oversees Zhoushan Shipyard, Zhoushan Dashenzhou Shipbuilding, and Zhejiang Yangfan General-use Machinery Manufacturing.

East Coast Shipbuilding spans an area of 790,000 square meters and is equipped to construct ships under 100,000 dwt, including car carriers, containerships, bulk carriers, tankers, and multipurpose vessels (MPPs). The shipyard has the capacity to build over 1 million dwt annually.

Despite struggling to generate profits in the last two years, Xingmin ITS has secured a separate deal with fellow Chinese shipbuilder Wuhu Shipyard. This agreement is expected to bring in nearly $425 million in orders in 2025 for eight 89,000 dwt bulk carriers and a 7,000 CEU car carrier.

Additionally, Wuhu Shipyard will outsource 37 orders to East Coast Shipbuilding over the next five years, which includes 10 MPPs and more than 15 chemical and product tankers.