[Courtesy of Daewoo Shipbuilding & Marine Engineering]
SEOUL -- Daewoo Shipbuilding & Marine Engineering said Friday that it has secured an order worth 170 million US dollars from a European shipping company to build two very large crude carriers (VLCCs) for delivery in the first half of 2020.
Daewoo Shipbuilding declined to disclose the name of the European company. The deal brought Daewoo Shipbuilding's accumulated orders so far this year to $1.2 billion for ten vessels, including four liquefied natural gas (LNG) carriers and five VLCCs.
Last week, the shipyard clinched orders to build two LNG carriers for a shipping company in the Oceania region by September 30, 2020, and build three VLCCs for a European shipping company by 2020.
A protracted business slump prompted South Korean shipyards to overhaul their bloated structure through the disposal of non-core assets through sweeping restructuring last year. Daewoo Shipbuilding has been put under a rehabilitation program by creditors.
This year, South Korean shipyards predict a slight recovery in their business, citing growing demands for gas-fuelled ships. However, Hyundai Heavy Industries has warned of a dwindling backlog of orders, saying its dockyard for offshore plants would be completely empty in a few months.
