K-Shipbuilding Secures Order for Six Ships Worth 540 Billion KRW 'At Once'

Leading the Golden Age of Medium-Sized Shipbuilding Industry

K Shipbuilding, recognized as a leading mid-sized shipbuilding company in Jinhae-gu, Changwon Special City, Gyeongnam, has signed a shipbuilding contract worth 540 billion KRW in a single transaction.

K Shipbuilding recently announced that it has secured orders for a total of six vessels from two shipping companies based in Asia: two 50,000-ton class petrochemical product carriers and four 75,000-ton class vessels.

With this order, which accounts for 33% of its annual order target, K Shipbuilding has achieved 59% of its yearly goal.

K Shipbuilding emphasized the significance of this contract. The company signed the contract for its main product, the mid-sized petrochemical product carrier, at a much higher price than before and succeeded in securing a new customer base, not just its existing clients.

A 50,000-ton petrochemical product carrier by K Shipbuilding.
[Photo by K Shipbuilding Co., Ltd.]

K Shipbuilding explained that the current boom in the shipbuilding market, its own competitiveness, and the recent expansion of refund guarantees (RG) for shipbuilding advance payments by the government and financial institutions have all contributed greatly to this achievement.

In fact, the RG for the vessels ordered this time will also be issued with the participation of KDB Industrial Bank and commercial banks.

The vessels contracted this time will be constructed to meet future eco-friendly standards, with technical specifications allowing for easy conversion to eco-friendly fuels such as LNG, methanol, and ammonia.

The ships will also comply with the increasingly stringent environmental regulations set by the International Maritime Organization (IMO) and satisfy the EEDI (Energy Efficiency Design Index) Phase 3 standard.

With this order, K Shipbuilding has now secured a total of 11 vessels worth 860 billion KRW this year, increasing its order backlog to 37 vessels.

Its affiliate, Daehan Shipbuilding, has also secured orders for a total of six vessels worth 930 billion KRW this year, bringing the combined order backlog of the two shipyards to 66 vessels, valued at 6 trillion KRW.

A representative from K Shipbuilding stated, "This large-scale order signals the revival of the mid-sized shipbuilding industry," adding, "Together with Daehan Shipbuilding, we will play a pivotal role as the twin engines ushering in a golden era for the mid-sized shipbuilding sector, leading its resurgence."