Samsung Heavy Industries clinches $983 million deal to build six containers

2017.09.27 14:22:41 | 2017.09.27 14:23:36
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South Korean shipbuilder Samsung Heavy Industries Co. won a 1.12 trillion won ($983.3 million) order from a European shipping firm to build six container vessels, which would be the biggest shipbuilding deal the Korean company has ever earned in seven years.

The company on Tuesday said in a regulatory filing that it has clinched a deal with a European shipping firm to build six container vessels at 1.12 trillion won. The container vessels will be delivered by the end of December, 2019, but the company did not disclose other details such as the name of the ship owner and the size of each vessels.

The deal follows a week after its rival Daewoo Shipbuilding and Marine Engineering Co. (DSME) won an order to build five 22,000 twenty-foot equivalent (TEU) mega container vessels, reportedly for Switzerland-based Mediterranean Shipping Company S.A. (MSC), the world’s second-largest shipping line. Major foreign media outlets have reported that Samsung Heavy Industries have also earned the order to build 22,000 TEU container ships from MSC.

To Samsung Heavy Industries, the latest deal is the largest single container-building contract in seven years when excluding offshore plant orders. The shipyard had been in drought of container vessel orders since it last received a $1.03 billion order to build 10 container vessels, 108,000 TEU each, from Taiwan-based shipper Evergreen Group in September 2010.

Following the deal, Samsung Heavy Industries has successfully obtained total $6.5 billion worth of orders to build 24 vessels so far this year, allowing it to achieve this year’s annual target already.

Its stocks soared 9.8 percent, or 1,000 won, to end at 11,200 won on Tuesday.

By Moon Ji-woong

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]

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