View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
January 2, 2017

IDRO and DSME sign deal to strengthen shipbuilding industry in Iran

South Korean shipbuilding company Daewoo Shipbuilding and Marian Engineering (DSME) has signed an agreement with Iran’s Industrial Development and Renovation Organisation (IDRO) to boost the shipbuilding industry in the Middle East country.

By Lopamudra Roy

South Korean shipbuilding company Daewoo Shipbuilding and Marian Engineering (DSME) has signed an agreement with Iran’s Industrial Development and Renovation Organisation (IDRO) to boost the shipbuilding industry in the Middle East country.

Free Report
img

2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

Having signed a Head of Agreement (HoA) on mutual cooperation, the two establishments will form a joint venture (JV) company.

Under the terms of the deal, the company will be responsible for constructing an Iranian shipyard in collaboration with DSME Okpo Shipyard.

"The company will send nearly 300 of its office employees on a month-long unpaid leave this month in an effort to reduce costs."

The new JV company will carry out the engineering works, as well as develop the different types of ships required and demanded by Iran.

For the fleet expansion of shipping companies across Iran, IDRO has selected DSME to develop and deliver the ships on time, based on the shipbuilding company’s advanced technologies and experiences.

The government of the Middle East country has agreed to strongly support the project in a bid to help the business cooperation succeed.

The Iranian Government has also requested the Government of South Korea and DSME to support on a wide range of sectors, which include financing and supplying of material package.

Since 1983, DSME has successfully delivered 38 vessels worth $1.65bn to Iranian shipping companies.

However, DSME has suffered a net loss of KRW1.19 trillion ($980m) in the first half of 2016, with its debt ratio exceeding 7,000%.

In efforts to reduce costs, the company will send nearly 300 of its office employees on a month-long unpaid leave this month, reported Yonhap News Agency.

These employees will be the first of DSME's 4,700 desk-job workers who will take unpaid leave in turns from this month in a bid to keep the shipyard operational.


Image: DSME signs HoA with IDRO. Photo: courtesy of DSME.

Related Companies

Free Report
img

2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Ship Technology