Reuters reported that ThyssenKrupp is in talks with Greek authorities about the future of Hellenic Shipyards and the unit's 1,200 staff but has not yet reached a decision on whether to close it.

A spokeswoman for ThyssenKrupp said that "The shipyard is in a difficult situation since the cancellation of a submarine contract."

The spokeswoman declined to comment on an article in German daily Handelsblatt which said the firm planned to stop paying employees at the end of the month.

ThyssenKrupp has run up costs of EUR 520 million to build four submarines for the Greek navy but scrapped the contract due to missed payments. The Greek defense minister had rejected delivery of the vessels due to technical defects.

(Sourced from www.reuters.com)