Croatian struggling 3. Maj Shipyard announced the completion of the construction of a bulk carrier for Algoma, Canadian shipping company, which the latter cancelled last year after 3. Maj failed to meet its contractual obligations.
Specifically, the two interested parties signed a contract on September 4, to restore the construction of the hull no. 733, the shipbuilder said in a stock exchange filing.
According to reports, the investment is estimated at USD 36.6 million. The vessel to experience the constructions is a self-unloading Handysize vessel which is reportedly already 80% complete.
The overall collaboration between 3. Maj and Algoma was cancelled by the latter in October 2018, for the hull 733 at the shipyard, along with three other vessel contracts.
3. Maj is part of troubled shipbuilding group Uljanik, which includes another major shipyard in Croatia, Uljanik Shipyard, along with smaller subsidiaries and has secured state guarantees on an HRK 150 million (USD 22.4 million) loan in order to revive production and complete vessels under construction.
Recently, Croatian authorities arrested 12 people as part of investigations into a corruption scandal of financially distressed shipbuilder Uljanik, due to allegations of ‘abuse of trust in financial transactions’ and fraud.