This file photo, provided by Daewoo Shipbuilding & Marine Engineering Co. on May 22, 2020, shows a 24,000-TEU container carrier built by the shipbuilder. TEU stands for twenty-foot equivalent unit, a measurement of cargo capacity. (Daewoo Shipbuilding & Marine Engineering Co.)
Daewoo Shipbuilding & Marine Engineering Co. said Wednesday that it has canceled an 891 billion-won ($820 million) container ship deal due to a shipper's failure to comply with contract terms.
The unidentified African company signed the deal with Daewoo Shipbuilding in December last year, but it has since not carried out conditions necessary for the deal to take effect, Daewoo Shipbuilding said in a regulatory filing.
Daewoo Shipbuilding said the deal cancellation did not cause financial loss as it has yet to launch the construction of the ships.
Shares of Daewoo Shipbuilding rose 1.67 percent to close at 27,400 won on the Seoul bourse on Wednesday.
Daewoo Shipbuilding has achieved 75 percent of its order targets so far this year. (Yonhap)
