Shanghai: Jiangsu Rainbow Heavy Industries (RHI) announced that its full subsidiary Jiangsu Rainbow Offshore & Engineering has decided to cancel orders for two offshore vessels.
Jiangsu Rainbow Offshore signed shipbuilding contracts for two offshore vessels with joint buyers Qingdao Yijia Import & Export Co and Weihai Xintaiyuan Shipbuilding in 2012. The price for each vessel was RMB141.33m.
RHI said the shipbuilding contracts still haven’t become effective due to relevant guarantees not provided. It has negotiated with the buyers and decided to cancel the two contracts in order to minimize operating risk. The buyers have all agreed to the decision. [30/10/13]
