Friday, September 20, 2019
S. Korea’s Shipbuilders Start Winning New Orders
Korean Shipbuilders Raise Order Targets
S. Korea’s Shipbuilders Start Winning New Orders
  • By Jung Min-hee
  • January 15, 2019, 09:11
Share articles

A medium range (MR) tanker

South Korea’s shipbuilders have started off the year with good news. They have continuously won new orders since the beginning of the year, making industry analysts feel hopeful for the year ahead.

Hyundai Mipo Dockyard Co. has received an order for four medium range (MR) tankers from Central Shipping Group, controlled by Greek shipowner Evangelos Pistiolis, according to industry sources on Jan. 14. The company hasn’t disclosed the exact value of the deal but the price of the vessel is estimated at US$38 million (42.69 billion won) per unit.

Furthermore, TradeWinds, the world's biggest shipping news service, said that global oil giant Shell is planning to place an order for large-scale tankers on Hyundai Mipo Dockyard under its “Project Solar.” Previously, Shell is said to be placing an order for up to 30 vessels for the project. The 30 ships include 16 35,000-DWT petrochemicals carriers, eight IMO type II 50,000-DWT mid-sized crude oil carriers and six 50,000-DWT mid-sized crude oil carriers. IMO type II vessels are capable of carrying harmful substances which require measures to prevent leakage.

Daewoo Shipbuilding & Marine Engineering Co. is also under easy sail. The company has clinched a US$215 million (241.55 billion won) deal with Angelicoussis Shipping Group, the largest shipping group in Greece, for one liquefied natural gas floating storage and regasification unit (LNG-FSRU)

In addition, Daewoo Shipbuilding officially announced on Jan. 14 that it has obtained an order for four very large crude carriers (VLCCs) from a shipowner in the Oceanian region. This is the first order received this year and is worth 409.50 billion won (US$364.49 million). The VLCCs are scheduled to be delivered to the shipowner at the end of February 2021.

Daewoo Shipbuilding is also expected to win an order for three 1,400-DWT submarines from the Indonesian Navy by the end of this month.

When the submarine deal is confirmed, the company will attain 16.6 percent of last year’s target (US$7.30 billion, 8.2 trillion won) with just four ships, including one LNG-FSRU. Daewoo Shipbuilding set the target figure for this year at US$8 billion (9 trillion won). It is about 10 percent higher than last year’s target.

Other South Korean shipbuilding companies are also raising their target figures for new orders. Three shipbuilding firms under Hyundai Heavy Industries Co. – Hyundai Heavy Industries, Hyundai Mipo Dockyard and Hyundai Samho Heavy Industries Co. – have presented the target of US$15.90 billion (17.86 trillion won), up 20.7 percent from a year earlier. In particular, Hyundai Mipo Dockyard fell short of the target of US$3 billion (3.37 trillion won) last year with US$2.45 billion (2.75 trillion won). However, the company has raised the target figure to US$3.53 billion (3.97 trillion won) this year. Samsung Heavy Industries Co. has set this year’s goal at US$7.80 billion (8.76 trillion), up US$1.50 billion (1.69 trillion won) from US$6.30 billion (7.08 trillion won).