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Biz News Korea(Eng)
Hyundai Heavy Industries wins order to build two VLCCs
- Collected
- 2017.02.22
- Distributed
- 2017.02.24
- Source
- Go Direct
Hyundai Heavy Industries has been negotiating terms with Enesel since it signed a letter of intent (LOI) with the Greek company last month. The company did not disclose financial terms, but given current market conditions a VLCC would likely cost $80 million. HHI would be able to get payment during the latter half of 2018.
HHI previously made five VLCCs for Enesel and its unit Samho Heavy Industries also built two of the same vessel kind for the Athens-based Greek shipper.
Other Korean shipbuilding majors Daewoo Shipbuilding & Marine Engineering Co. (DSME) and Samsung Heavy Industries Co. are vying to draw orders for large bulk carriers from Greek shippers following recovery in the crude oil market.
Demand for the super-sized bulkers has increased due to easing in the price from $95 million.
HHI would be on its own as a shipbuilder after it spins off non-shipbuilding operations in April.
At 1:39 p.m., shares of Hyundai Heavy Industries rose 1.62 percent or 2,500 won to 157,000 won in Seoul trading Wednesday.
By Moon Ji-woong
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]