DSME received a US$210 million order from a Greek client
Daewoo Shipbuilding & Marine Engineering (DSME), the world’s No. 3 shipbuilder, has received a US$210 million order to build two oil tankers from a Greek client, Almi Tankers, S.A. The order is for two VLCC (Very-Large Crude Carrier) measuring 333 meters in length and 60 meters in width. These tankers will be built in DSME’s Okpo Shipyard in Geoje, South Gyeongsang Province and are scheduled to be delivered to the client by late 2013. “Almi Tankers were a great support and help to us last year when the market was in a bad situation, by showing deep trust in us. We will return this trust by providing them with the best quality products,” said Nam Sang-tae, President & CEO of DSME. Almi Tankers placed an order worth US$650 million at the end of last year.
With this order, the recovery of the shipbuilding industry is expected by industry professionals. In fact, according to Clarkson Research Services, a research firm specializing in the offshore and shipbuilding construction industries, charterage in the VLCC sector is on the rise, showing an 18% increase during the first quarter of this year since hitting bottom in the fourth quarter of last year. The average charterage of VLCC for a one-year contract rose from US$31,615 per day (in the fourth quarter of 2009) to US$37,208 per day (in the first quarter of 2010). The order received by DSME is considered good news and expected to relieve concerns over the financial crisis in Greece since many were worried that the situation in Greece, the No. 1 maritime power in the world, may influence Korea’s shipbuilding industry. DSME currently ranks No. 1 in the world, taking up a 19% market share, and having received orders for 37 VLCC’s from a worldwide total of 196.
DSME, along with the Nova Scotia state government of Canada, is establishing a joint venture to produce windmills with an investment of Cdn$40 million. Additionally, the company signed an MOU with Nova Scotia Power Inc. (NSPI), the sole electricity provider in the region, to provide equipment and facilities for wind power generation. DSME owns 51% and the Nova Scotia state government owns 49% of the newly established company which plans to purchase a railcar plant in Halifax, the state capital of Nova Scotia, and remodel it into a windmill production plant. Upon remodeling of the facility, the plant is expected to generate Cdn$230 in revenue by generating a maximum of 600 blades and 250 towers annually. Luckily, there is already various traffic infrastructure, such as a railroad and port nearby, making the site the perfect location to be a windmill plant.
“We will graft the advanced technology of DSME, which has been building the best vessels in the world, to the newly established company, in order to make it the bridgehead of the windmill market in North America,” said Nam. Nova Scotia governor, Darrel Dexter expressed his hopeful expectations for the development of the region with the establishment of the plant by saying, “This plant will bring about many direct as well as indirect benefits, such as the creation of 500 new jobs.”