SNC Shipbuilding collapses

Fledgling South Korean yard SNC Shipbuilding is reported to have succumbed to financial difficulties, closing its doors prior to launching even a single completed vessel. The yard, which was expected to cost $179.6m to build near the port of Gwanyang, was designed to build vessels of up to 80,000 dwt on its 700,000m2 premises upon completion this autumn.

However, the plans came to a grinding halt when the company was unable to honour a bill for Won390m when it was presented to Pusan Bank on March 17. Local sources also quote reports that, despite securing orders for vessel construction, the yard was unable to come up with the necessary bank guarantees.