Roncheng Xixiakou Shipyard Co has taken out legal proceedings against Wärtsilä for breach of contract, claiming the engine manufacturer knowingly supplied a reconditioned shore-based power generation engine as a new marine engine for installation in a 12 500dwt multi-purpose vessel ordered by Spliethoff Bevrachtingskanoor.
RONGCHENG XIXIAKOU SHIPYARD CO. LTD. is located at the geographically convenient Longyang port in the city of Weihai, the easternmost port of China and the one closest to the Korean Peninsula. This shipyard began to build vessel for export from 2006.
Roncheng Xixiakou Shipyard Co has taken out legal proceedings against Wärtsilä for breach of contract, claiming the engine manufacturer knowingly supplied a reconditioned shore-based power generation engine as a new marine engine for installation in a 12 500dwt multi-purpose vessel ordered by Spliethoff Bevrachtingskanoor.
Roncheng Xixiakou also alleges that the Dutch shipowner colluded with the Finnish engine builder to get out of the shipbuilding contract which was signed in June 2008, an allegation flatly denied by Wärtsilä.
The latest proceeding is Qingdao Maritime court of the PRC who deals with this lawsuit held the first instance at November 22 ( Beijing time). By fax Wärtsilä suggested a negotiation meeting with shipyard in China at the 50th week of 2011 on his local time November 23rd.
According to shipyard’s statement they gave a positive response to the meeting proposal, “ we agree with any place appointed by Wärtsilä” and also appointed a people to see after liaison with Wärtsilä. Until December 18, the end of 50th week ,shipyard said , they had received neither response from Wärtsilä nor explanation of appointment cancellation.
The second instance will be held on February 2012. Some people believe the negotiation door for shipyard and Wärtsilä closed.
Most people got to know this legal dispute from Marintec exhibition Shanghai where 29-page document worded ‘Open Letter to the Shipbuilding Industry and the Media’ were distributed throughout.