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전체검색영역
Hyundai Heavy Industries wins breakthrough deals in Russia
Collected
2016.09.05
Distributed
2016.09.06
Source
Go Direct
[Photo by Hyundai Heavy Industries]

[Photo by Hyundai Heavy Industries]

South Korea’s troubled shipbuilder Hyundai Heavy Industries Co. may receive much-needed breakthrough from Russia by winning $660 million order for oil tankers

According to the presidential office and the company sources Sunday, Russia’s largest state-owned shipping company Sovcomflot last month chose the South Korean shipbuilder as preferred bidder to build 12 oil tankers which will be used to carry crude oil produced in Russia to overseas. Sovocomflot will charter the fleet to Shell.

The two firms are in talks to determine detailed terms of the agreement and plan to sign a deal within the month.

Separately, the Far Eastern Shipbuilding and Ship Repair Center (FESRC) run by state-run Rosneft PJSC signed an agreement with Hyundai Heavy Industries to create a joint venture on engineering and project management.

Under the agreement, the world’s largest shipbuilder will help the FESRC to build green Aframax tankers - which runs on natural gas motor fuel - at its Zvezda shipyard. The Russian shipyard, located in the town of Bolshoy Kamen in the Russian Far East, is scheduled to deliver its first batch of orders by 2019. The Far East region in Russia is significant for both Russia and the South Korean conglomerate as its late founder Chung Ju-yung took part in the development of the region back in 1989. Hyundai Heavy Industries also runs farming and hotel businesses in the region.

Chung’s grandson Chung Ki-sun, senior vice president of HHI Corporate Planning, attended the signing ceremony in Russia. He also signed a general memorandum of understanding (MOU) with state-owned oil giant Saudi Aramco last November, as well as an MOU with U.S. industrial giant General Electric Co. this March.

By Nam Gi-hyun and Park Yong-beom

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]