Japanese yard suspends work

Japanese shipbuilder Kanasashi Heavy Industries has ceased operation as it does not have the funds to procure ship parts and equipment for newbuildings. The medium-sized shipbuilder has so far been unable to secure funds from domestic banks, however, a shipyard official said he believed that even if the banks were not able to help, a trading house would step in. He said that the yard would not be filing for bankruptcy or court protection.

According to a Japanese report, Kanasashi has not made a profit in two years. It reported a loss of $799,500 in 2007 and $23 million last year. Kanasashi has a 25-vessel backlog including orders from Mitsui OSK Lines and J Lauritzen.