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DSME to conduct consignment management on Iranian state-run shipbuilder

Collected: 2016.05.16

Distributed: 2016.05.18

Source: Go Direct

South Korea’s large shipbuilder Daewoo Shipbuilding & Marine Engineering Co. has recently signed a business agreement on operation and technology instruction for Iranian state-run shipbuilder Iran Shipbuilding & Offshore Industries Complex Co. (ISOICO) with the Iranian government, according to the shipbuilding industry on Sunday. Under the agreement, the Korean shipbuilder will transfer technology and conduct consignment management on the Iranian shipbuilder.

The Iranian government wanted to acquire technology of Korea to develop the shipbuilding industry and the government reached an agreement with the Korean shipbuilder on the partnership, according to sources in Iran. DSME concluded the agreement with Industrial Development and Renovation Organization of Iran (IDRO), which is a government organization under the Iranian ministry on industry and mineral. IDRO is in charge of core industries including automobile and shipbuilding. ISOICO is a state-owned company for shipbuilding under IDRO. The company has a large shipyard in Iranian port city Bandar Abbas.

The Iranian government has hoped to get foreign investments with a strategy to raise the city as a hub of the shipbuilding industry in the Middle East. ISOICO has moved to construct offshore structures needed for the development of gas fields. The Iranian government wanted DSME to make investments even in equipment and materials but the Korean shipbuilder facing the worst financial difficulties agreed to transfer technology and conduct consignment management.

By Park Yong-beom

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