J Ocean Heavy Industries Secures Six More Tankers... "A Green Light for Gunsan Shipyard's Normalization"

[Financial News] J Ocean Heavy Industries, which is in the process of acquiring HD Hyundai Heavy Industries' Gunsan Shipyard in Jeonbuk, has successfully secured new orders for six tankers in total.
On the 21st, J Ocean Heavy Industries announced that it had signed letters of intent (LOIs) with a shipowner in Oceania for the construction of two 157,000-ton-class crude oil carriers and four 114,000-ton-class crude oil and petrochemical product carriers.
After signing an LOI in June for the construction of four 114,000-ton-class crude oil and petrochemical product carriers, the company added six more vessels in the second half of the year, bringing the total number of vessels scheduled for construction to 10.
Since signing an asset transfer agreement with HD Hyundai Heavy Industries in June and beginning the subsequent procedures, J Ocean Heavy Industries has secured orders proactively even before completing the acquisition and is moving smoothly toward the shipyard's normalization. 
"The latest orders were driven not only by Gunsan Shipyard's ability to build ultra-large vessels, but also by its fast delivery schedule," a J Ocean Heavy Industries official said. "We are also continuing to receive inquiries from overseas shipowners about additional orders." 
For shipping companies, it is important to receive vessels early and put them into operation. J Ocean Heavy Industries explained that its competitive delivery schedule, supported by production capacity and efficient process management, helped it win the orders.
Gunsan Shipyard currently has no backlog of orders for completed vessels, allowing shipowners to receive their vessels at the time they want because of the short delivery schedule. 
Both vessel types covered by the agreements are next-generation designs developed by HJ Shipbuilding & Construction. In particular, the 114,000-ton-class crude oil and petrochemical product carrier was designed to meet the environmental regulations of the International Maritime Organization (IMO) while allowing the selective transport of crude oil and petroleum products. This enables shipping companies to maximize efficiency and profitability according to market demand.
J Ocean Heavy Industries has now secured 10 vessels scheduled for construction this year alone.
"There is still much to do after securing the orders, including obtaining refund guarantees (RGs), refurbishing the yard and equipment, and expanding the workforce. However, we will concentrate our capabilities so that Gunsan Shipyard can serve as a catalyst for revitalizing the local economy," a J Ocean Heavy Industries official said. 

[email protected] Kwon Byung-seok Reporter