European Client Cancels Order, Says DSME

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Daewoo Shipbuilding & Marine Engineering said on Friday that a European customer called off a 589.3 billion Korean won ($520.8 million) ship order, making it the first cancellation of an order to the major shipbuilder this year.

The South Korean shipbuilder said in a regulatory filing that two VLCCs and two bulk carriers, which were ordered in 2008, were annulled because its client failed to honour payables. It did not identify the shipping company.

Industry officials say global shipping firms will cancel or delay orders due to the lack of credit amid Europe’s debt woes.

South Korea’s major shipbuilders have received requests to delay deliveries of 24 ships worth some $3 billion as the debt crisis in Europe bites, raising fears about a repeat of the 2008 downturn that hit the industry globally.

South Korea is home to the world’s biggest shipbuilders including Daewoo and Hyundai Heavy Industries.

Reporting by Hyunjoo Jin (Reuters)

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Posted on December 9, 2011, in Asia, South Korea and tagged , , , , , , , , , , , , , . Bookmark the permalink. Comments Off on European Client Cancels Order, Says DSME.

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