HD Korea Shipbuilding & Offshore Engineering Co. announced on Tuesday the cancellation of a 416.9 billion-won ($313 million) contract to construct two passenger ships for a New Zealand state ferry operator, KiwiRail Holdings Ltd.
The South Korean shipbuilding giant revealed that the cancellation was initiated at the request of KiwiRail, a New Zealand state-owned enterprise responsible for rail operations and operating interisland ferries. The deal, secured by HD Korea Shipbuilding in 2021, had not commenced construction.
HD Korea Shipbuilding, a subsidiary of the shipbuilding, oil refining, and machinery conglomerate HD Hyundai, expressed its intention to engage in negotiations with KiwiRail regarding post-cancellation matters, including potential reimbursement for design costs.
The conglomerate oversees three domestic units: HD Hyundai Heavy Industries Co., Hyundai Mipo Dockyard Co., and Hyundai Samho Heavy Industries Co.