- Yangzijiang Shipbuilding subsidiaries canceled contracts for four 50,000 DWT MR oil tankers worth about US$180 million.
- The termination followed disclosures linking the buyer’s sole shareholder to a U.S. sanctions evasion scheme.
- Deposits and installments totaling US$22.48 million had already been collected under the contracts.
- The company stated the cancellation will not materially impact its 2025 financial performance.
Yangzijiang Shipbuilding (Holdings) Ltd. has announced the cancellation of shipbuilding contracts worth about US$180 million for four medium-range oil tankers. The contracts, originally scheduled for delivery between 2026 and 2027, were terminated by three of its subsidiaries after concerns emerged regarding the buyer’s compliance with U.S. sanctions laws, as shared by PortNews.
The subsidiaries — Jiangsu Yangzijiang Shipbuilding Group, Jiangsu New Yangzi Shipbuilding, and Jiangsu Yangzi Xinfu Shipbuilding — acted on legal advice after disclosures indicated that the buyer’s sole shareholder was allegedly linked to a sanctions evasion scheme. Based on this, the contracts were deemed either an anticipatory repudiatory breach or frustrated due to supervening illegality related to payment obligations.
The group noted that all legal rights against the buyer remain reserved. A total of US$22.48 million in deposits and installments had already been collected, including a 10% down payment when the contracts were signed. Despite the cancellation, the company stated that the decision will not have a material impact on its financial results for the year ending December 31, 2025. Incorporated in Singapore in 2005, Yangzijiang Shipbuilding (Holdings) Ltd. continues to serve as the parent entity for its shipbuilding and related operations.
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Source: PortNews
