South Korean ocean carrier Hyundai Merchant Marine entered a deal with Daewoo Shipbuilding & Marine Engineering for the construction of five new very large crude carriers, with the option for five more.
South Korean ocean carrier Hyundai Merchant Marine (HMM) and Daewoo Shipbuilding & Marine Engineering (DSME), also based out of South Korea, signed a letter of intent (LOI) for the construction of five new very large crude carriers (VLCCs), HMM said.
The initial five 30,000 dwt vessels may be joined by five more vessels.
The agreement will be finalized by the end of July, along with further discussion about LNG carrier engine and eco-friendly technology partnerships.
HMM said the newbuilding deal is the first case of using the “New Shipbuilding Program” with a pot of KRW 2.6 trillion (U.S. $2.28 billion), which the Korean government announced last October in order to aid the shipping industry.
The LOI for newbuilds comes just weeks after the announcement that the Korean government has given DSME another bailout package valued at $2.6 billion.
HMM currently operates 12 VLCCs and plans on ordering small to medium sized containerships, in addition to the new VLCC order.
HMM strikes deal with DSME for new VLCCs
