Daewoo Shipbuilding signs 470 billion won deal with HMMDaewoo Shipbuilding & Marine Engineering said Monday that it has secured a 470 billion won ($420 million) order to build five very large crude carriers (VLCCs). Under the deal with Hyundai Merchant Marine, Korea’s top shipping firm, Daewoo Shipbuilding, said it will deliver the vessels by September 2019.
Last week, Hyundai Merchant said it plans to spend 470 billion won to buy five new VLCCs and 182 billion won to acquire two container vessels.
In April the two signed a letter of intent for the potential deal.
The Daewoo-Hyundai deal is the first under a government-initiated program to revive the shipping industry.
Daewoo Shipbuilding was saved from bankruptcy after its creditors arranged a 6.7 trillion won rescue package. Winning new orders is critical for the shipbuilder, which needs to solve its liquidity problems.