HHI signs tanker orders worth $229m

Newbuilding contracts include four product tankers and one VLCC to be delivered from June 2021. The new order target of $15.9bn is unchanged from 2019.

News ID: 80473

Date: 23 January 2020 - 11:56

The South Korean shipbuilder expects the market to improve this year in certain segments. The improved prospects are helped in part by stricter environmental requirements in shipping.

HYUNDAI Heavy Industries has picked up Won266.6bn ($229m) worth of tanker orders as the South Korean shipbuilder strives to hit its sales target this year.

Hyundai Mipo Dockyard, a HHI unit, disclosed in a release the contract to build four 50,000 dwt product tankers for domestic owner Pan Ocean.

The newbuildings are priced at Won157bn in total. Delivery is scheduled from June 2021.

Meanwhile, Hyundai Samho Heavy Industries, another HHI subsidiary yard, said it had clinched another order for one very large crude carrier worth Won109bn.

The builder did not identify the owner, which is said to be a European company. The very large crude carrier is also scheduled for delivery in June 2021.

HHI has set a target of $15.9bn in new ship orders for 2020, similar to last year. The group ended the past year with $13bn in orders.

However, the shipbuilder expected the market to improve this year, according to the release.

An HHI official was quoted as saying that the stricter environmental requirements in shipping would lead to continuing demand for fresh tonnage types, such as product tankers and liquefied natural gas vessels.