HD KSOE Secures $241 Million Contract for Two Ammonia Carriers
HD KSOE Secures $241 Million Contract for Two Ammonia Carriers

HD KSOE Secures $241 Million Contract for Two Ammonia Carriers

  • 21-Feb-2024 5:16 PM
  • Journalist: Emilia Jackson

South Korea's premier shipbuilding conglomerate, HD Korea Shipbuilding & Offshore Engineering (HD KSOE), has recently inked a substantial agreement to fabricate two very large ammonia carriers (VLACs) for a shipping enterprise headquartered in the Africa. This contract, valued at KRW 322.8 billion (equivalent to approximately $241.3 million), stands as a momentous achievement for the company. The vessels are slated for construction at the esteemed HD Hyundai Heavy Industries shipyard in Ulsan, with an anticipated delivery target set for February 26, 2027.

This latest triumph further bolsters HD KSOE's stellar performance since the onset of the year. The company has amassed orders totaling a staggering $4.77 billion for the construction of 40 vessels, encompassing a diverse array of categories including VLACs, LPG carriers, ethane carriers, oil tankers, petrochemical carriers, and LNG carriers. Remarkably, this figure represents 35.3 percent of the shipbuilder's annual objective of $13.5 billion, thereby underscoring its robust growth trajectory and formidable competitiveness within the industry.

In stark contrast to its industry peers, HD Korea Shipbuilding has surpassed its annual order target, showcasing resilience and efficacy in an intensely competitive landscape. This accomplishment distinguishes HD KSOE from fellow South Korean shipbuilders such as Samsung Heavy Industries (SHI) and Hanwha Ocean, both prominent players in the domestic shipbuilding arena.

The sustained influx of orders serves as a testament to HD KSOE's expertise and dependability in delivering top-tier vessels that cater to the evolving demands of global maritime transportation. With a firm foothold in the market and a diverse portfolio encompassing various vessel types, HD KSOE remains at the forefront of driving innovation and excellence within the shipbuilding sector.

Previously, it was disclosed that the company has secured a contract valued at KRW 317 billion ($240 million) to construct two ammonia carriers. These vessels will be built at the facilities of HD Hyundai Heavy Industries Co., a division of HD KSOE. In 2023, HD KSOE surpassed its annual order target of $15.7 billion by signing contracts worth $22.6 billion. The order was placed by an undisclosed shipping company based in the Middle East, with a value of KRW 310 billion ($235 million). This successful bid represents the latest achievement for HD KSOE, following a string of impressive orders in the initial weeks of January 2024, totaling 25 ships. Notably, last week, the company announced orders valued at approximately $2.15 billion with shipping conglomerates from Europe, Oceania, Asia, and the Middle East.

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