China Ocean Industry has announced that it has reached a preliminary agreement with an unnamed buyer for two of six unfinished vessels at its subsidiary yard, Jiangzhou Union Shipbuilding.
The six vessels were terminated by two German owners as the shipyard couldn’t deliver them according to contract terms. This month, China Ocean Industry lost an arbitration case regarding the contracts for four of the six vessels.
China Ocean Industry expects to sign the official sale and purchase agreement with the buyer in the first quarter.
Additionally, China Ocean Industry has entered into a framework agreement with its joint venture partner, Yangzijiang Shipbuilding, under which Yangzijiang agreed to offer a bid of $8m in an auction for another unfinished vessel at the yard and will not increase its offer if there are higher bids.