DSME secures order for four containerships

17 February 2021 (Last Updated February 17th, 2021 15:30)

South Korean shipbuilding company Daewoo Shipbuilding and Marine Engineering (DSME) has secured an order for the construction of four containerships.

DSME secures order for four containerships
The total value of the order is approximately $441m and the vessels are expected to be delivered by September 2023. Credit: ArnoudNL / Shutterstock.

South Korean shipbuilding company Daewoo Shipbuilding and Marine Engineering (DSME) has secured an order for the construction of four containerships.

The total value of the order is approximately $441m and the vessels are expected to be delivered by September 2023.

In a regulatory filing, DSME said that the order has been placed by an unnamed European shipowner.

The order is being reported on the back of another major deal in the division, in which the company secured an order worth $1bn for six liquefied natural gas (LNG)-powered 23,500+ twenty-foot equivalent unit (TEU) ultra-large box ships.

In December last year, DSME received a $2.6bn order from UAE-based state-run ADNOC for three super-large crude carriers.

The vessels will be constructed at DSME’s Okpo Shipyard and are scheduled for delivery by Q1 2023.

The new vessels will help to meet the second phase of the Energy Efficiency Design Index (EEDI), a regulation on greenhouse gas emissions introduced by the International Maritime Organization (IMO) in 2020.

In November last year, DSME and ABS signed a joint development project (JDP) to deploy solid oxide fuel cell (SOFC) technology as a replacement to at least one of three diesel generators typically on board a very large crude carrier (VLCC).

It was the second JDP between ABS and DSME in connection with SOFC technology.

For 2021, DSME has set the order target of $7.7bn, Yonhap News Agency reported.

In addition, Korea Shipbuilding & Offshore Engineering (KSOE) has extended the deadline for the acquisition of shares due to the regulatory delays.

After KSOE signed the revised contract with DSME on 22 January, the mega-merger deadline was extended from September 2020 to June 2021, Offshore Energy reported.

The anticipated tie-up will see Hyundai Heavy Industries (HHI) take over DSME from Korean state lender KDB, the majority shareholder, owning a 55.7% stake in the firm.