Hyundai Heavy lands deal to build 2 tankers

Hyundai Heavy Industries, a major Korean shipbuilder, has secured a deal to build two oil tanker ships, marking its first shipbuilding deal of the year, industry sources said Tuesday.

The ships are scheduled to be delivered in July and September 2018, the sources said.

The deal with Bermuda-based DHT Holdings, estimated at 194 billion won ($167 million), marks the shipbuilder’s first deal of the year.

The shipbuilding industry, once regarded as the backbone of the country’s economic growth and job creation, has been reeling from mounting losses caused by an industry-wide slump and increased costs.

The country’s top three shipyards suffered a combined operating loss of 8.5 trillion won in 2015 due largely to increased costs stemming from a delay in the construction of offshore facilities and the industry-wide slump, with Daewoo Shipbuilding alone posting a 5.5 trillion won loss.

The shipbuilders have drawn up sweeping turnaround programs worth some 11 trillion won in a desperate bid to overcome a protracted slump and mounting losses.

Hyundai Heavy is forecast to have swung into the black for last year on cost-cutting measures, while its two other local rivals - Samsung Heavy Industries and Daewoo Shipbuilding - are expected to see continued losses. YONHAP