3. Maj to Restore Production as It Renews Contract with Algoma
- Business & Finance
Croatian financially-troubled 3. Maj Shipyard will complete the construction of a bulk carrier for Canadian shipping company Algoma.
On September 4, 2019, the duo signed a contract to restore the construction of the hull no. 733, the shipbuilder said in a stock exchange filing.
The investment is valued at USD 36.6 million, local media cited Darko Horvat, Croatian economy minister, as saying.
The ship in question is a self-unloading Handysize vessel which is reportedly already 80 percent complete.
Back in October 2018, Algoma canceled the shipbuilding contract for the hull 733 at the shipyard, along with three other vessel contracts. The shipowner sent the cancellation notices due to “the yard’s failure to secure refinancing for the ships.”
3. Maj Shipyard, whose majority shareholder is Uljanik Group which is currently undergoing bankruptcy proceedings, has secured state guarantees on an HRK 150 million (USD 22.4 million) loan in order to revive production and complete vessels under construction.
World Maritime News Staff