Korean shipbuilding industry 'foghorns recovery' in Russia

Korean shipbuilding industry 'foghorns recovery' in Russia. June. 05, 2017 07:16. by Min-Ji Jung jmj@donga.com.

Driven by technological competency, Korean shipbuilding industry is turning towards Russia in order to activate its sluggish business.

According to Hyundai Samho Heavy Industry on Sunday, Ka Sam-hyeon, CEO of Shipping and Maritime Sales Division at Hyundai Heavy Industry, and Igor Sechin, CEO of the Russian government-owned petroleum corporation, signed a technology transfer agreement between "Zvezda-Hyundai" at the St. Petersburg International Economic Forum on June 2 (local time). Founded as a joint venture (JV), "Zvezda-Hyundai" was invested by Hyundai Samho Heavy Industry (49 percent) and Zvezda Shipbuilding (51 percent).

The agreement includes articles on service provision of design, procurement, human resources, training, and others required to build ships for the new JV by Hyundai Samho Heavy Industry. With the help from its counterpart and JV, Zvezda Shipbuilding plans to build Aframax tankers starting next year. "We wish the new JV and the technology transfer agreement open new business opportunities in Russia," said a Hyundai Samho Heavy Industry official.

In addition, another Korean shipbuilder Daewoo Shipbuilding and Marine Engineering (DSME) held the naming ceremony for its world's first icebreaking LNG cargo in Russia. At the event held in St. Petersburg on Saturday, around 140 participants joined the ceremony, including Russian President Vladmir Putin and DSME CEO Jeong Seong-rip.

The new icebreaking LNG cargo, which is 299 meters long and 50 meters wide, can sail while breaking 2.1-meters thick ice. DSME recently won a contract for building 15 icebreaking LNG cargoes at around five trillion won. The remaining 14 ships currently built at DSME's Okpo Dockyard will all be delivered by 2020.