Irem Registered as Vendor for Major Domestic Shipbuilders... Expanding from Semiconductors and Displays to LNG Ships

Irem announced on the 27th that it has completed vendor registration with a major domestic shipbuilding company.

Irem has been recognized for its technological capabilities by supplying special stainless steel pipes to leading semiconductor and display companies in Korea. Starting in the second half of the year, it plans to expand its business area to the eco-friendly ship sector by promoting the supply of steel pipes for LNG (liquefied natural gas) carriers.

Currently, Irem is expanding its special steel pipe facilities in line with the order boom trend of domestic shipbuilders. Irem plans to produce high value-added products through the expansion of thick-walled pipe facilities at its Buan plant within the third quarter. According to the company, the margin rate in the steel pipe sector is expected to increase significantly as a result.

A company official explained, “With the strengthening of global environmental regulations, orders for eco-friendly ships are increasing. In particular, the order volume for LNG carriers, which domestic shipbuilders are focusing on, increased by about 153% in the first quarter compared to last year.”

In fact, the EU (European Union) aims to reduce greenhouse gas emissions from ships by 55% by 2030 compared to 1990 levels. The industry expects that, along with this, demand for LNG carriers will continue to expand due to the replacement demand for aging ships and changes in the energy market centered on Europe.

The company official added, “Due to past incidents where Chinese-made LNG carriers broke down at sea, there has been a strong shift toward domestic shipbuilders who have strengths in eco-friendly ships. Recently, the U.S. efforts to curb the Chinese shipbuilding industry have also had a positive effect on Korea.”

Irem has obtained certifications from KR (Korean Register) and major global classification societies, enabling stable supply of steel pipes for shipbuilding. From 2020 to 2023, Irem’s sales of steel pipes for shipbuilding have rapidly grown at a CAGR (compound annual growth rate) of approximately 146.6%.

A company official stated, “Typically, about 200 to 300 tons of stainless steel pipes are used per LNG carrier, and if bids are successful, sales in the shipbuilding sector are expected to increase by more than 300% compared to last year.”