Friday, February 28, 2020
Hyundai Heavy Industries Wins Orders for 5 Ships Worth 266.6 Bil. Won
Order Target for 2020 Set at US$15.9 Bil.
Hyundai Heavy Industries Wins Orders for 5 Ships Worth 266.6 Bil. Won
  • By Michael Herh
  • January 22, 2020, 10:01
Share articles

Ka Sam-hyun (left), president of Hyundai Heavy Industries, and Ahn Joong-ho, CEO of Pan Ocean shake hands after signing a product carrier (PC) construction contract on Jan. 20.

Hyundai Heavy Industries Group has won orders for four petrochemical product carriers (PCs) and a super-large oil tanker totaling 266.6 billion won (about US$230 million).

Hyundai Mipo Dockyard signed a contract with Pan Ocean, a Korean shipping company, on Jan. 21 to build four 50,000-ton PCs worth 157.4 billion won (about US$136 million). The PCs will be delivered sequentially starting June 2021. They will be built by Hyundai-Vietnam Shipbuilding (HVS), a joint venture between Hyundai Mipo Dockyard and a state-run Vietnamese shipbuilding company. PCs are the main product of Hyundai Mipo Dockyard, which received orders for a total of 40 PCs last year alone.

Hyundai Heavy Industries Group also received an order for a 300,000-ton super-large oil tanker from a European client. The oil tanker will be built at Hyundai Samho Heavy Industries in Yeongam in South Jeolla Province and will be delivered in June next year.

Hyundai Heavy Industries expects that PC orders will increase in 2020. As the International Maritime Organization (IMO) 2020, a strengthened environmental regulation, has come into force, demand for low-sulfur oil has been on the rise worldwide, and major oil companies such as ExxonMobil are increasing their facility investment to ramp up production of low-sulfur oil.

This year, Hyundai Heavy Industries Group has set a shipbuilding order target of US$15.9 billion, up 22 percent from its order receipt total of US$13 billion in 2019.