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Hyundai Samho under HHI Group bags $287.5 mn order for 3 VLCCs

Hyundai Heavy Industries (HHI) Group, the owner of the world’s biggest shipbuilder, may achieve this year’s ship order target of $15.9 billion sooner than expected after its affiliated shipyards have succeeded in winning a series of new vessel orders in the first month of 2019.

South Korea’s Hyundai Samho Heavy Industries Co., under the nation’s largest shipbuilder Hyundai Heavy Industries Group, won a 320 billion won ($287.5 million) worth order on Tuesday to build three very large crude carriers (VLCCs) from a European ship owner, the company announced Wednesday. The contract also includes an option to build one more vessel.

Hyundai Samho will build the three vessels that will be 330 meters long and 60 meters wide at its shipyard in Yungam, South Jeolla Province, and deliver them starting the second half of 2020. The ships will be equipped with a scrubber that reduces harmful emissions such as sulphur and nitrogen oxides that are regulated by the International Maritime Organization (IMO).

HHI Group shipyards have received total 717 orders so far since 1972 when it became the first Korean shipbuilder to win a deal for a VLCC. According to shipbuilding and marine industry tracker Clarkson, 186 out of 748 VLCCs in operation across the world came from HHI, accounting for almost 25 percent of the total.

HHI and its two shipbuilding affiliates Hyundai Samho and Hyundai Mipo Dockyard Co. have won a series of new orders for crude carriers, product carriers (PCs) and VLCCs since the beginning of the year, signaling a recovery of the shipbuilding industry that has long been suffering from a shortage of demand.

HHI Group has set an order target for this year at $15.9 billion, 21 percent higher than the previous year.

On Thursday, shares of Hyundai Heavy Industries fell 4.15 percent to close at 138,500 won on news of its interest to buy Daewoo Shipbuilding & Marine Engineering Co., a merger that would bring together the world`s two biggest shipyards.
Source: Pulse

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