HD Hyundai (267250.KS) won an order worth about 2 trillion won to build large eco-friendly container ships for HMM (011200.KS), South Korea's largest container carrier, underscoring its competitive position in the high-value vessel market.
HD Korea Shipbuilding & Offshore Engineering (009540.KS), HD Hyundai's shipbuilding intermediate holding company, said on the 20th that it had signed a contract with HMM to build eight 13,000-TEU container ships powered by dual-fuel engines running on liquefied natural gas. One TEU equals one 20-foot container. The contract is valued at about 1.92 trillion won ($1.3 billion).
Each vessel measures 337 meters long, 51 meters wide and 27.9 meters high, and will carry a dual-fuel propulsion engine capable of burning both LNG and conventional marine fuel. Two ships will be built at HD Hyundai Heavy Industries (329180.KS) in Ulsan and six at HD Hyundai Samho in Yeongam, with deliveries to the carrier scheduled sequentially through 2029.
The ships will be fitted with independent-type LNG fuel tanks produced at HD Hyundai Eco Vina, the group's manufacturing base for eco-friendly independent tanks. By supplying key equipment from within the group in addition to building the vessels, HD Hyundai is strengthening its value chain in the eco-friendly ship business.
The contract also marks a combination of HMM's strategy to expand its eco-friendly fleet and HD Hyundai's ship design and construction capabilities. HD Hyundai said it plans to deepen cooperation with HMM while drawing on its experience and technology in building vessels powered by alternative fuels such as LNG and methanol to solidify its standing in the high-value ship market.
An HD Hyundai official said inquiries about new orders for LNG carriers, LPG carriers and container ships continue to come in, led by global shipping lines. The official said the company will expand orders for high-value eco-friendly vessels and maximize profitability based on its accumulated design and construction expertise and customer trust.