Samsung Heavy Industries wins contract for two Aframax ships

3 December 2019 (Last Updated December 3rd, 2019 11:57)

South Korea-based shipbuilder Samsung Heavy Industries (SHI) has secured a contract to construct two liquefied natural gas (LNG) Aframax tankers.

South Korea-based shipbuilder Samsung Heavy Industries (SHI) has secured a contract to construct two Aframax tankers.

In a stock exchange announcement, SHI said that the company received the order valued at approximately KRW187.5bn ($158m) from a European shipping firm.

According to the contract, the company will deliver the two Aframax vessels by March 2022.

The tankers will be capable of safely operating even after colliding with ice of up to 70cm at -30° C.

In a statement, SHI said: “SHI became the first shipbuilder to clinch a deal to build a bidirectional ice-breaking tanker in 2005 and another deal to build a drillship designed for drilling in the Arctic region in 2008, which was successfully delivered, emerging as a leading producer of ships specialised for the Arctic region.”

Last week, the company won a $1.5bn order from an unidentified Eurasian client to build LNG tankers. According to the agreement, the vessels will be delivered by September 2022.

In October, SHI signed a contract with Taiwanese shipping company Evergreen Marine to build six box ships in a deal valued at approximately KRW1tn ($920m).

Including the latest contract, SHI has secured orders to construct a total of 39 vessels in contracts worth $7.1bn so far this year. The shipbuilding contracts include 13 LNG carriers, 16 crude oil tankers, six containers and two petrochemical product vessels.

The orders helped the South Korean ship maker to achieve 91% of its $7.8bn annual target.