Onishigumi Shipbuilding files for court protection

Small sized Japanese shipbuilder Onishigumi Shipbuilding has filed for protection in court.

Established in 2005, Onishigumi took over the former Kyoei Shipyard and builds offshore support vessels and tankers up to 5,000DWT.

A shipbuilding source said that it was unlikely that Onishigumi’s collapse was due to the global financial crisis as its orderbook consisted mainly of domestic orders. The shipyard was however felled by financial difficulties due to the rising cost of shipbuilding and had racked up US$74.4 million in debts.

The builder will continue to operate as there are still five vessels in its orderbook.
 

Source: Baird Maritime