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Hyundai Merchant Marine Abandons Options for Five VLCCs at DSME

Hyundai Merchant Marine

South Korean shipping giant Hyundai Merchant Marine has decided to abandon its options for five additional tankers, the company confirmed to World Maritime News.

The company’s very large crude carrier (VLCC) options were a part of an earlier shipbuilding agreement with compatriot shipbuilder Daewoo Shipbuilding & Marine Engineering (DSME).

Namely, in April 2017, Hyundai Merchant Marine and Daewoo Shipbuilding & Marine Engineering signed a letter of intent for the construction of five 300,000 dwt VLCCs, with an option for five more ships. The parties were also to consider LNG carrier engine and eco-friendly technology for the ships.

At the time, HMM said it would use funds from the financing package worth KRW 2.6 trillion (USD 2.28 billion), a part of South Korea’s efforts to help the country’s shipping industry, to finance the newbuildings.

The Original Posted by World Maritime News Staff