CSSC Huangpu Wenchong Shipbuilding Company has received a government grant of RMB11.58m ($1.69m) from its ultimate parent China State Shipbuilding Corp (CSSC).

Huangpu Wenchong is wholly-owned by CSSC Offshore & Marine Engineering (Comec), which in turn is a subsidiary of CSSC, following the completion of an internal restructuring.

Comec said the grant will be included in its non-operating income for 2017 and will not affect the profit or loss of the company for 2016.

The government grant came on the back of a protracted downturn in the global shipbuilding industry, with China hit particularly hard as new shipbuilding orders shrank amid reduced newbuilding prices and higher labour and material costs.

Source: seatrade-maritime.com