Hyundai Glovis signs MOU with Norwegian shipping company

Hyundai Glovis CEO Kim Jung-hoon, left, and Wilh. Wilhelmsen Holding ASA CEO Thomas Wilhelmsen pose for a photo after singing a memorandum of understanding on Wednesday. [HYUNDAI GLOVIS]

Hyundai Glovis signed a memorandum of understanding (MOU) with Norwegian maritime company Wilh. Wilhelmsen Holding ASA to enhance and expand its eco-friendly energy business.

Founded in 1861, Wilh. Wilhelmsen Holding ASA is global maritime company headquartered in Lysaker, Norway. With over 2,000 operations across the world, the company has been leading businesses in ship management and maritime products.

According to Hyundai Glovis, the logistics arm of Hyundai Motor, on Thursday, the two companies plan to jointly ship liquefied natural gas (LNG), one of the cleanest natural gasses.

Due to its higher risk of explosion compared to other cargoes, LNG shipping is a sector that requires thorough operation management and training for crews. Hyundai Glovis said the combination of its competence in fleet operation and Wilh. Wilhelmsen Holding ASA's experience in ship management will prove crucial in the future gas shipping business.

Under the MOU, the two companies also agreed to develop a green hydrogen ecosystem in the shipping industry. Various businesses such as environmentally friendly hydrogen-powered ship operation and shipping will be included in further discussions.

“The two companies made a partnership to proactively respond to recent increasing demand in LNG and strengthening environmental policies,” a spokesperson for Hyundai Glovis said. “Based on each company’s competitiveness, Hyundai Glovis and Wilh. Wilhelmsen Holding ASA will try our best to generate a synergy effect in the future eco-friendly energy businesses.”

Considering the Covid-19 pandemic, the MOU signing ceremony was held online including Hyundai Glovis CEO Kim Jung-hoon and Wilh. Wilhelmsen Holding ASA CEO Thomas Wilhelmsen.

BY CHEA SARAH [chea.sarah@joongang.co.kr]