Hyundai Heavy Industries Wins Order for 5 Ships Worth 266.6 Billion KRW

"With Environmental Regulations in Effect, PC Beam Orders Expected to Proceed Smoothly This Year"

[Asia Economy Reporter Yoo Je-hoon] Hyundai Heavy Industries Group announced on the 21st that it has secured orders for five vessels, including petrochemical product carriers (PC ships) and very large crude carriers (VLCC), worth 266.6 billion KRW.

According to Hyundai Heavy Industries Group, Hyundai Mipo Dockyard signed a construction contract on the same day with Pan Ocean for four 50,000-ton PC ships worth 157.4 billion KRW.

PC ships are Hyundai Mipo Dockyard's main vessel type, with 40 ships ordered last year alone. The vessels ordered from Pan Ocean this time will be built at Hyundai-Vietnam Shipbuilding (HVS) and are scheduled for sequential delivery starting June 2021. Hyundai-Vietnam Shipbuilding is a joint venture between Hyundai Mipo Dockyard and the Vietnam state-owned shipbuilding company.

A Hyundai Heavy Industries Group official stated, "The outlook for PC ship orders this year is also positive," adding, "With the full implementation of the environmental regulation IMO2020, global demand for low-sulfur fuel oil has significantly increased, and major oil companies such as ExxonMobil in the United States are increasing capital investment to boost production."

Orders for very large crude carriers were also secured. Hyundai Heavy Industries Group received an order for one 300,000-ton VLCC from a European shipowner. This vessel will be built at Hyundai Samho Heavy Industries in Yeongam, Jeollanam-do, and is scheduled for delivery in June 2021.

Meanwhile, Hyundai Heavy Industries Group set its shipbuilding order target for this year at 15.9 billion USD. This represents a 22% increase compared to last year's order amount of 13 billion USD, reflecting expectations of market recovery with large-scale liquefied natural gas (LNG) projects planned.

A group official said, "With the implementation of environmental regulations this year, orders for related vessels such as gas carriers and PC ships are continuing," and added, "We will do our best to achieve this year's order target based on our advanced technology in this field."