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DSME Wins Two Crude Tanker Orders from Singapore

DSME CEO Chung Sung-rip (right) and DSME Labor Union Head Hyun Si-han (left) pose for a photo with BW Group CEO Carsten Mortensen at the two VLCCs construction contract signing ceremony in Singapore on July 29 (local time).

Daewoo Shipbuilding & Marine Engineering Co. (DSME), the world’s second largest and financially-strapped shipbuilder, announced on August 1 that it has won an order to build two very large crude carriers (VLCCs) for the Singapore-based oil and gas transporter BW Group.

DSME Labor Union Head Hyun Si-han also attended the contract signing ceremony to promise the ship owner its dedication to the successful project.

The BW Group is the DSME’s key customer with confidence which ordered three crude oil carriers in 2000 even when the company carried out the workout programs. It also ordered four liquefied natural gas (LNG) carriers and four very large liquefied petroleum gas (LPG) carriers in the last two to three years. The group has ordered a total of 63 vessels from DSME and has received 53 so far.

Angelicoussis Shipping Group Limited (ASGL), Greece’s largest shipowner, has also ordered four ships at DSME in June. Strong confidence of its major customers help DSME to overcome its financial crisis. Moreover, a series of orders shows that the shipping market is gradually picking up despite unfavorable conditions, including Brexit, according to industry sources.

Under the deal, DSME will build two 318,000-ton VLCCs, which will be 336 meters long and 60 meters wide, at the Okpo Shipyard in Geoje and deliver them to the BW Group by 2018.

With the latest order, Daewoo Shipbuilding has won 10 orders, including two LNG carriers, six oil tankers and two special vessels, at total worth of US$1 billion (1.11 trillion won) so far this year.

The Original Posted by Jung Min-hee/Business Korea