The Canadian shipping company Algoma Central Corporation has announced on its website that it has taken steps to cancel its remaining four new vessel construction contracts with the Croatian shipyard '3. Maj'.

“The cancellation notices have been sent to the shipyard as a result of (its) failure to secure refinancing and Algoma has no assurance that the shipyard will be able to complete the four vessels,” Algoma said on Friday.

“The Company will now initiate the process to be reimbursed for contract instalments paid to date, including issuing demands under related refund guarantees,” it added.

Late last month, the Canadian company had cancelled a contract with the Pula-based Uljanik shipyard for the construction of a bulk carrier.

The Rijeka-based 3. Maj shipyard, a member of the Uljanik Group, will thus be left without a single vessel in its order book, the Novi List newspaper wrote on Saturday, adding that the cancellation of these contracts entails slightly over EUR 70 million in state guarantees.

Economy Minister Darko Horvat said in an interview with the Jutarnji List newspaper on Saturday that Danko Koncar, the strategic partner in Uljanik, would show his seriousness by demonstrating his readiness to recapitalise the company.

He said that serious talks were under way with potential investors from China, South Korea, Germany, the Netherlands, Italy, and Ukraine.

“Generally, they are all more interested in 3. Maj than in the Pula shipyard. But they all first need to carry out due diligence in the Uljanik Group before taking their business decisions and making binding offers,” Horvat said.  

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