P+S Werften Loses DFDS Newbuild Pair

P+S Werften’s Volkswerft Stralsund site

DFDS (DFDS.KO), the Danish shipping and logistics company, said Thursday it has cancelled contracts with German shipyard P+S Werften GmbH for a pair of new ships ordered in November 2010.

DFDS says that the contracts have been cancelled as the shipyard “breached several terms of the contracts.”

In August, P+S Werften filed for insolvency with the local court of Stralsund, Germany, after talks with creditors, customers and suppliers broke down. Following the announcement, DFDS, with two ro-ro newbuildings on order with P+S Werften, immediately expressed concerns over whether or not the vessels on order will be delivered.

DFDS says that the companies investment commitment for building the ships, of around DKK1.0 billion, will cease and that the payments made to the shipyard are covered by a bank guarantee. DFDS had planned investments of about 450 million Danish kronor, or $79 million, to build the new ships for 2012.