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March 21, 2022

Daewoo Shipbuilding secures $430m contract to build new LNG ships

The company will build two new LNG vessels for an undisclosed North American shipper by the end of 2025.

South Korea-based Daewoo Shipbuilding & Marine Engineering (DSME) has secured a $430m contract from an undisclosed shipper in North America to build new liquefied natural gas (LNG) ships, reported Yonhap News Agency.

Under the deal, the company will construct two new LNG carriers for the North American shipper by the end of 2025.

Daewoo Shipbuilding has received $3.47bn worth of orders since the beginning of the year, attaining 39% of its $8.9bn yearly order target.

The company aims to achieve KRW6.62tn ($6bn) in sales this year, which is 47% more than last year’s target.

Due to the increased demand for value-added ships such as LNG and container ships, Daewoo Shipbuilding won orders worth a total of $10.86bn from various customers last year.

Separately, Daewoo Shipbuilding entered a memorandum of understanding (MoU) with UK-based defence company Babcock International last week, reported BusinessKorea. The deal covers the development of technologies for warships.

Both firms are planning to deploy their technologies in different types of ships at home as well as abroad.

In March 2019, Hyundai Heavy Industries (HHI), along with Korea Development Bank, agreed to acquire DSME, which builds various vessels, submarines and destroyers.

In January, it was reported that European Union (EU) officials were preparing to block the merger between DSME and HHI.

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