On April 7, 2017, Hyundai Merchant Marine signed a letter of intent (LOI) with Daewoo Shipbuilding & Marine Engineering (DSME) to build five 300,000-ton VLCCs with an option of five more vessels.

HMM has formed a ‘newbuilding examination committee’ at the end of last year, and has thoroughly reviewed all the conditions for newbuilding including demand/type/number of vessels, market trend, and investment feasibility etc.

Hyundai Merchant Marine Signs Letter Of Intent with DSME for construction of VLCCs

Mr. Chang-keun Yoo, CEO of HMM stated: “We currently operate twelve VLCCs which have been foundational to stable profits and enhancing sales competitiveness. We thought this year is the right time to order new VLCCs at historically low newbuilding price.” And he added “HMM’s fleet competitiveness in the medium and long run will be further strengthened through the New Shipbuilding Program.”

The final agreement will be concluded by the end of July, and discussion about LNG carrier engine & Eco-friendly technology will be also made.

This newbuilding deal is the first case of using New Shipbuilding Program with a pot of KRW 2.6 trillion ($2.28 billion), which Korean government announced on last October to support the shipping industry.

HMM also plans to order small-medium sized container vessels other than VLCC.

Source: HMM