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Hyundai Heavy wins 400-million-dollar deal to build ore carriers

Hyundai Heavy wins 400-million-dollar deal to build ore carriers

Posted October. 24, 2017 08:03,   

Updated October. 24, 2017 08:09


Hyundai Heavy Industries has won another deal to build very large ore carriers (VLOC) worth 400 million U.S. dollars, after winning a deal last month.

It has been awarded a contract to build five 325,000-ton VLOCs from the domestic shipper Polaris Shipping, according to South Korea’s largest shipbuilder on Monday. The shipbuilder won an 800-million-dollar deal last month to build 10 VLOCs from the same shipper, which is the largest deal the shipbuilder has clinched in five years. Because the two companies signed an option contract last month, the shipper placed an additional order this time. As a result, Hyundai Heavy Industries has earned the entire 1.2-billion-dollar contract from the shipping company.

Polaris Shipping ordered the deals for its long-term charter contract it signed with Brazilian mining giant Vale in 2007. The VLOCs, which will be built at a shipyard of Hyundai Samho Heavy Industries located in Yeongam, South Jeolla Province, will be 340 meters in length, 62 meters in width and 29.8 meters in height.

Hyundai Heavy Industries, Hyundai Samho Heavy Industries and Hyundai Mipo Dockyard, the three shipbuilding arms of Hyundai Heavy Industries Group, have won deals worth a total of 6.7 billion dollars to build 110 vessels this year, exceeding 90 percent of their annual target of 7.5 billion dollars.

Do-Young Kwak now@donga.com