Greater ChinaShipyards

Cosco Guangdong Shipyard increases layoffs as work dries up

Cosco Guangdong Shipyard, a major offshore yard of Cosco Shipyard, is currently facing difficulties due to lack of new orders, Splash understands.

A source at Cosco Guangdong told Splash that the shipyard started to lay off contractors late 2015, and now it has started to lay off shipyard employees and lowering salaries of those who remain.

According to the source, the shipyard has almost completed all the onhand orders including more than 10 PSVs, one tender barge and one semi-submersible drilling rig, and some of the vessels are facing delivery risks.

In May 2015, Tidewater delayed the delivery of two PSVs it ordered at Cosco Guangdong. Under the agreement, Tidewater can elect to take delivery of one or both of the vessels at any time prior to June 30, 2016. However, Cosco Guangdong will refund the installments paid on the PSVs, $5.4m per vessel if the delivery is not taken.

When asked by Splash, an official at Cosco Guangdong Shipyard said yard operations are normal and wouldn’t give any further information.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.
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