Evergreen cancels China shipyard JV
Taiwan's Evergreen Marine chairman Arnold Wang has confirmed that his company has pulled out of a joint venture with the Chinese government to build a shipyard at Quanzhou in Fujian province, reports Lloyd's List.
Mr Wang said the investment in the project, announced last August, had been cancelled for commercial reasons. The new yard, with a projected capacity of 350,000 tonnes, was to open in 2011.
Evergreen may also have cancelled its order for 12,400-TEU newbuildings, said Lloyd's. Evergreen's order apparently cannot secure needed credit. The company would not comment.
Evergreen has been in the midst of an internal debate between those who want 13,000-TEU ships and those who fear excess capacity, with group chairman Chang Yung-fa publicly favouring vessels no bigger than 8,000 TEU.