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Biz News Korea(Eng)
DSME to build 2 Suezmax tankers originally contracted to its Romanian arm
- Collected
- 2016.04.14
- Distributed
- 2016.04.15
- Source
- Go Direct
DSME announced on Wednesday that it will construct two Suezmax tankers, contracted originally to its subsidiary Daewoo Mangalia Heavy Industries S.A. (DMHI) in Rumania for $130 million, at its shipyards in Geoje, South Gyeongsang Province. DMHI, which has been put on sale as part of the financially-squeezed Korean shipbuilder’s efforts to restructure, was awarded the order from a client in Greece in December 2014.
An unnamed official at the shipbuilder said that as DMHI is a separate entity, the order is regarded as a new order for DSME. With the contract swap from its Romanian arm to DSME, the contract value would also rise somewhat, he added.
Korea’s state-owned policy bank Korea Development Bank, the main creditor bank of DSME, has pushed for sell-off of loss-making DMHI, but it has not found a suitor for it yet. DMHI is said to have decided not to take any new order after it completes buildings of those ordered previously. It is highly likely to serve as a repair shipyard or be shut down after its last order is delivered.
The latest contract swap indicates an ongoing slump in the shipbuilding industry, preventing DSME and other rival shipbuilders from getting any fresh orders.
By Park Yong-beom
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]