Daewoo cancels 891 billion won shipbuilding deal with African firm

Daewoo Shipbuilding & Marine Engineering Co. canceled an 891 billion-won container ship deal with an African company due to its failure to comply with contract terms.

The African shipper signed the deal with Daewoo Shipbuilding in December last year, but it has since not carried out conditions for the deal to take effect. The deal cancellation did not cause financial loss to Daewoo Shipbuilding as it has yet to launch the construction of the ships.

The South Korean shipbuilder Daewoo Shipbuilding has so far achieved 75 percent of its order targets this year.

Daewoo Shipbuilding is currently in the process of merging with Korea Shipbuilding and Offshore Engineering.

China recently became the third country to approve the merger following Kazakhstan in October 2019 and Singapore in August this year. The merger still needs to be approved by the EU, South Korea, and Japan.