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SUMEC gives up on unfinished LEG vessel

SUMEC Group, a state-run machinery manufacturer in Jiangsu, has announced its decision not to continue the construction of an unfinished 22,000 cu m LEG vessel at CIMC Sinopacfic Offshore & Engineering.

The vessel was originally ordered by Norwegian owner Ocean Yield and SUMEC was the financier of the newbuilding project. The owner cancelled the vessel when Sinopacfic Offshore filed for receivership in 2016,  before it was taken over by CIMC in 2017.

SUMEC said the decision was made after a thorough evaluation of the project and it has booked an impairment loss of RMB63.2m ($9.4m) for the project.

SUMEC took over the ownership of bankrupt Dayang Shipbuilding last year and restructured the yard into New Dayang Shipbuilding.

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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