Korean Economy News
Samsung Heavy Industries wins $364.8mn deal for 4 shuttle tankers

By Woo Je-yoon and Cho Jeehyun

South Korea’s Samsung Heavy Industries Co. has secured an order worth 392.3 billion won ($364.8 million) from Singaporean firm AET to construct four shuttle tankers, the shipbuilder said in a regulatory filing on Friday.

The latest order amounts to 5 percent of the shipbuilder’s 2017 revenue. The vessels are to be delivered by October 31, 2020, according to the company.

A shuttle tanker is a vessel designed to transport oil from an offshore plant to an onshore storage facility. A majority of shuttle tankers are currently operated in the North Sea and the Barents Sea in Europe, the eastern part of Canada, as well as in offshore oil fields in Brazil.

Samsung’s shuttle tankers for AET will be equipped with a latest dynamic positioning system, which helps a vessel to automatically maintain its position and heading stably. The engines will also be built to meet International Maritime Organization’s Tier III environmental regulation.

With the latest order from AET, Samsung Heavy Industries that first built a shuttle tanker in Korea in 1995 has won 56 shuttle tanker orders out of total 130 orders placed worldwide until now or accounts for the largest 43 percent market share.

Its new shuttle tankers for AET will be used in Brazil, providing the company an opportunity to earn additional orders in the region, said a Samsung Heavy Industries official.

Shares of Samsung Heavy Industries finished Friday 0.27 percent lower at 7,470 won.

LG Elec to buy 20% stake in robotics maker Robostar for $50 mn
South Korea’s CJ to go to Hollywood
Family Site