Hanjin Heavy as Best Bidder for New OSV, Philippines

HANJIN Heavy Industries and Construction (HHIC)’s Yeongdo Shipyard speeds up its business by signing a letter of intent (LOI ) to build USD 300 million Offshore Supply Vessel (OSV).

Lately, HHIC has been very aggressive to win the battle for bids. HHIC’s Subic Shipyard has recently won the bid to build 6,800TEU container ships for Technomar, a shipping company based in Greece. In addition, the first shipbuilding company in Korea has signed an agreement to build 38,000 CBT LPG carriers with Exmar.

Because HHIC has so far built carrier ships, tankers and bulk carriers only, building a gas carrier is a significant move. The total amount of bids earned by HHIC so far reaches up to US 600 million dollars (options included, 12 vessels). These ships will be built in Subic Shipyard and delivered in order starting 2015.

In particular, recently contracted container ships are high-efficiency and high-performance, 2nd-generation economical vessels whose fuel consumption can be reduced by 5-7%, compared to the ships contracted in 2011. In addition, they are environment-friendly because LNG, LPG and heavy oil can be used as fuel. Moreover, it’s been reported that HHIC exercised its option for additional shipbuilding regarding 9,000TEU container ships ordered by NSC in Germany. In addition, a deal on four 180,000T bulk carriers with another European shipping company is under way.

After solving all labor problems recently, the Yeongdo Shipyard has signed a LOI for building OSVs with a European shipbuilding company. The labor union has also been very supportive by sending a letter of appeal to the shipping company and asking for help to related industries to help the Company to win the bid to build 150,000T coal carriers, which would be promoted by five KEPCO’s affiliates in Korea.

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Press Release, March 11, 2013