Singapore-listed Yangzijiang Shipbuilding, China’s largest private shipyard, on Saturday revealed it has been involved in arbitration proceedings over a $900m newbuild contract placed in late 2021 that quickly turned sour.
Yangzijiang stated in a release that an unspecified customer had placed orders for up to 10 vessels in late 2021 worth $900m, only to cancel them a few months later in early 2022.
The shipowner has claimed there was a breach of the contract and has been claiming $835m in compensation including loss of profits as well as refund of the payments made, which total $3.3m.
The first tranche of arbitration hearings are scheduled for next month with Yangzijiang saying over the weekend it felt it has a “reasonably good” prospect of success.