HHIC Wins Big New Orders (The Philippines)

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

Lately, HHIC has been very aggressive in winning 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 Korean shipbuilding company 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 represents 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, the first delivery being scheduled for 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 environmentally-friendly because LNG, LPG and heavy oil can be used as fuel.

Moreover, it’s been reported that NSC from Germany has exercised its option with HHIC for additional shipbuilding regarding 9,000TEU container ships.. 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 future will show if it could eventually win this bid for the first time in five years.

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 win the bid to build 150,000T coal carriers, which would be promoted by five KEPCO’s affiliates in Korea. Since a shipping company and five power generation companies in Korea entered into the Contract of Affreightment (COA) for shipment of bituminous coal, it appears that a contact between the shipping company and shipbuilder would soon be signed.

An official from the HHIC said: “We have made continued efforts to win bids with a goal of normalizing our business despite current economic slowdown and operational risks such as a labor strike.” He added: “We are about to successfully conclude a deal on the OSV with a European shipping company. In addition, we have actively participated in domestic bids to build bulk carriers.”

[mappress]

HHIC, March 11, 2013