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Thursday, April 02, 2009

Taiwan shipbuilder to sue Israeli firm for breach of contract

Thursday, 02 April 2009

Taiwan's China Shipbuilding Corp (CSBC) plans to seek damage from Israeli shipping line Zim for scrapping orders for six containers ships, the company said Wednesday. Zim's orders for the six 1,700-TEU (20-foot equivalent unit) container ships were worth a total of 220 million US dollars. SCBC is seeking compensation according to its contact with Zim, company president Lee Chih-cheng told a news conference.
"The sum we are seeking will cover Zim's violation of contract and compensation. I cannot reveal the sum because our contract requires confidentiality," he said.
Lee said the cancellations will not affect CSBC's business because the firm has received enough orders from Taiwan and foreign shipping firms to keep it busy until 2012.
CSBC, based in Kaohsiung in south Taiwan, is the island's biggest shipbuilding company. It has its main shipyard in Kaohsiung and a smaller yard in Keelung, north Taiwan.

Source: DPA