Croatian shipbuilder Uljanik saw another cancelled newbuilding order, involving the construction of a livestock carrier by an owner in Kuwait.
According to data provided by local media, Livestock Transport & Trading Co. terminated the existing contract because the vessel could not be delivered in line with the terms defined by the current contract.
This happens as the shipyard has been in financial trouble for months and workers are on a strike over ILO breaches, as they have not received their wages for months.
However, Uljanik added that the client was willing to renegotiate new contract terms and talks on that were underway.
In 2018 and earlier, several other companies, including the Luxembourg-based RoRo ferry and dry bulk transportation company CLdN, terminated their shipbuilding contracts with Uljanik.
The head of the shipyard’s strike committee said on Monday workers were continuing with the strike, even though the Metalworkers’ Union (SMH) decided to end it, while the Adriatic Union and the Istria, Kvarner and Dalmatia Union believe workers cannot return to work as they have not received seven monthly wages, Total Croatia News reported.
In March, Croatian police authorities arrested 12 people as part of investigations into a corruption scandal of the shipbuilder, due to allegations of ‘abuse of trust in financial transactions’ and fraud.
The country’s Ministry of the Interior said the police started investigations into Uljanik in September 2018.
