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.