Hyundai Heavy Industries lands $700m Iranian order

HHI’s senior vice president Chung Ki-sun, left, with Amirsaman Torabizadeh, managing director of the Islamic Republic of Iran Shipping Lines on Friday. [HYUNDAI HEAVY INDUSTRIES]

The recovered economic relationship with Iran this year is paying off as Hyundai Heavy Industries has won an order to build 10 large vessels worth $700 million.

HHI and the Islamic Republic of Iran Shipping Lines (IRISL) signed a 10-vessel contract at the company’s headquarters in Seoul on Friday, the Korean shipbuilder said Sunday.

HHI will build four 14,500 20-foot equivalent containerships and six 49,000 deadweight ton product chemical (PC) tankers. The containerships are 366 meters long (1200 feet), 48.2 meters wide and 29.9 meters high and can carry 14,500 20-feet containers. The PC vessels that the shipbuilder’s affiliate Hyundai Mipo Dockyard will build are 183 meters long, 32.2 meters wide and 19.1 meters high.

The vessels will be delivered to Iranian companies beginning in the second quarter of 2018.

The company expects more orders from Iran since the U.S.-led sanctions against the Persian country were lifted in January, which would lead to larger production of natural resources including crude oil and gas in the region.

“This deal is meaningful in that we have secured the lead [in the Iranian market] through the successful first order from Iran [since sanctions have been lifted],” said a HHI official. “We will do our best in putting emphasis on sales in order to overcome the dried-up orders [in the global ship market].”