A CHINESE state-owned entity has taken over Zhoushan Wison Offshore & Marine, a shipyard that was forced to be sold due to US sanctions. 

Nantong Tongzhou Enterprise Management Partnership, ultimately owned by the Nantong city government, has become the de facto controlling entity of Zhoushan Wison. The yard was previously owned by Wison New Energies, part of Shanghai-based Wison Group, a privately run Chinese firm specialising in energy and chemical services. 

The acquisition follows the US Department of State’s sanctions last month against Zhoushan Wison, now rebranded as Zhoushan Tongzhou Offshore Engineering, for building modules for Russia’s Arctic LNG 2 project. 

The yard had been contracted to construct and commission around 150,000 tonnes of pipe rack modules for three production lines. In August 2021, two of the world’s largest LNG modules for the project were shipped to Murmansk, Russia. 

Following the sanctions, Wison New Energies announced it would cease all Russia-related business and sell off its entire stake in Zhoushan Wison. 

This is not the first time Chinese state-owned bodies have stepped in to acquire assets impacted by US sanctions. In the past, Chinese companies facing sanctions have sought support from state-backed enterprises to secure policy backing, financial assistance, or to rebuild their market position. 

“The involvement of state capital could provide policy-driven financing support, enhance credibility, and enable the company to re-enter international markets,” an industry insider told Lloyd’s List, suggesting this may be a way forward for Zhoushan Wison. 

Despite the sale, Wison New Energies continues to operate another offshore engineering yard in Nantong and is constructing a new facility in Qidong.