The Philippines: HHIC Inks LOI for Eight Fuel-Efficient Container Carriers

HHIC Inks LOI for Eight Fuel-Efficient Container Carriers

HHIC’s Subic Shipyard has signed a LOI to build eight 5,400TEU container ships for a European client. According to the Korean shipbuilder, the newly contracted ships are highly fuel-efficient. In terms of capacity, they are same with the ones the Subic Shipyard contracted last year with 5,400 TEU.

Early this year, HHIC’s Subic Shipyard already won USD 600 million (options included) bid to build 12 vessels in total including 6,800TEU container ships and 38,000 cbm LPG carriers. Because it still has four ships to build from the option on the last year’s contract, it is very likely that the company would book enough advance orders for three years of production.

In addition, the Subic dockyard signed an MOU for mutual cooperation in offshore plant with Singapore shipyard, the world’s leader in the manufacture of offshore plant to secure long-term revenue source. Since then, it has been very aggressive to create synergy effects through business diversification by participating in various joint projects and penetrating into steel structure business.

Despite current unfavorable market conditions in shipbuilding industry, HHIC has concentrated on winning orders and improving revenue structure through business diversification with a goal of maximizing synergy effects among shipyards in Korea and abroad.

Thanks its strenuous efforts to enhance cost competitiveness through cost innovation and win bids using the sales networks around the world, it has been able to achieve current successes such as Yeongdo Shipyard’s signing of LOI to build Offshore Support Vessel (OSV) and Subic Shipyard’s recent success.

If the ongoing deal is successfully concluded, HHIC’s Subic Shipyard’s achievement would increase up to 20 vessels in total this year only, which would in turn make a big contribution to the company’s business performance.

Press Release, March 14, 2013