Dalian: Financially troubled Weihai Samjin Shipbuilding is going to be taken over by the Weihai local government.
The Korean invested shipyard has been facing financial difficulties since last year with much of the yard’s production facilities now suspended.
Belgian owner Bocimar has cancelled orders for four 36,000 dwt bulkers at Weihai Samjin as the shipyard could not deliver the ships on time. Germaen owner Oldendorff also cancelled one ship at the shipyard.
Weihai Samjin currently has in-hand orders of 52 vessels. The government is now working on the rescue plans for the shipyard.
Samjin is the latest Korean yard in China to fail – following the likes of STX and Daehan in Korea. [16/09/14]