HD Hyundai wins 1.92 trillion won order from HMM for eight LNG dual-fuel container ships
In short
HD Hyundai's shipbuilding holding company, HD Korea Shipbuilding & Offshore Engineering, said on 20 October it signed a contract with HMM to build eight 13,000 TEU LNG dual-fuel container ships for a total of about 1.9196 trillion won. HD Hyundai Heavy Industries will build two and HD Hyundai Samho six, with deliveries running to 2029.
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HD Hyundai has won an order from HMM for eight 13,000 TEU LNG dual-fuel container ships. HD Korea Shipbuilding & Offshore Engineering (HD한국조선해양), HD Hyundai's intermediate holding company for shipbuilding, said on 20 October that it had signed the construction contract. The total contract value is about 1.9196 trillion won. Yonhap and Seoul Economic Daily describe HMM as the country's largest container shipping line. [ 5 , 9 , 10 , 11 ]
Each ship is 337 m long, 51 m wide and 27.9 m high and has a dual-fuel engine that can burn both LNG and conventional marine fuel. HD Hyundai Heavy Industries (HD현대중공업) in Ulsan will build two and HD Hyundai Samho (HD현대삼호) in Yeongam six. Chosun Ilbo, Seoul Economic Daily and Yonhap say they will be delivered in sequence to 2029, while Asia Economy and Newsis say HMM will receive them in sequence from 2029. [ 5 , 7 , 8 , 10 , 11 ]
Bloter, citing filings with the Financial Supervisory Service, reported that HD Hyundai Heavy Industries' share is a 479.9 billion won contract for two ships and HD Hyundai Samho's is 1.4397 trillion won for six, or 75% of the total. The contract period runs from 20 October to 31 December 2029. A deposit and advance payments are made, with the rest paid according to construction progress. [ 12 ]
The ships will carry independent LNG fuel tanks made by HD Hyundai Ecovina (HD현대에코비나), which HD Hyundai describes as its green independent-tank manufacturing base. Chosun Ilbo said HD Korea Shipbuilding & Offshore Engineering acquired it last year from Doosan Enerbility, and Newsis said it is in Vietnam. HD Hyundai said supplying key equipment within the group strengthens its value chain for green ships. An HD Hyundai official said inquiries for LNG carriers, LPG carriers and container ships continue, and that the company will expand orders and maximise profitability. [ 5 , 9 , 10 , 11 ]
Newsis and Yonhap reported that with this contract HD Korea Shipbuilding & Offshore Engineering has won 182 ships worth $20.19 billion this year, 86.6% of its annual target of $23.31 billion. [ 9 , 11 ]
HMM said it will invest 2.1 trillion won in 12 container ships, taking its investment this year past 6 trillion won. Besides the eight new ships, it will acquire four feeder ships by resale, taking over contracts for ships under construction. It plans to deploy the large ships on the Far East-India-Mediterranean route. HMM said the investment takes into account the two to three years or more that shipbuilding usually takes and the shipping market cycle, and is meant to prepare for a coming upturn. Yonhap added that HMM earlier announced a plan to invest 29 trillion won by the end of 2030 to expand its fleet to 166 container ships and 110 bulk carriers. Bloter put HMM's total at 2.1678 trillion won and said HMM announced the investment plan on 15 October. [ 7 , 8 , 11 , 12 ]
Why it matters
The order adds to HD Hyundai's yearly order total, which Yonhap and Newsis put at 86.6% of its annual target after this contract. For HMM, outlets describe it as part of a long-term fleet expansion plan, and HMM said it is meant to prepare for a future shipping upturn.
Key facts
- HD Korea Shipbuilding & Offshore Engineering (HD한국조선해양), HD Hyundai's intermediate holding company for shipbuilding, said on 20 October it signed a contract with HMM to build eight 13,000 TEU LNG dual-fuel container ships. [ 5 , 9 , 10 , 11 ]
- The total contract value is about 1.9196 trillion won. [ 1 , 5 , 9 , 10 , 11 , 12 ]
- Each ship is 337 m long, 51 m wide and 27.9 m high, with a dual-fuel engine that can use LNG and conventional marine fuel. [ 1 , 5 , 9 , 10 , 11 ]
- HD Hyundai Heavy Industries will build two of the ships and HD Hyundai Samho six. [ 1 , 5 , 7 , 8 , 9 , 10 , 11 , 12 ]
- Deliveries are due in sequence to 2029, according to HD Hyundai-side reports. [ 1 , 5 , 9 , 10 , 11 ]
- HMM said it will invest 2.1 trillion won in 12 container ships: the eight new 13,000 TEU vessels and four feeder ships. [ 7 , 8 ]
- HMM's investment this year has passed 6 trillion won, according to HMM. [ 7 , 8 , 11 ]
- With this order, HD Korea Shipbuilding & Offshore Engineering has won 182 ships worth $20.19 billion this year, 86.6% of its $23.31 billion annual target. [ 9 , 11 ]
Confirmed by several sources
- HD Korea Shipbuilding & Offshore Engineering signed a contract with HMM for eight 13,000 TEU LNG dual-fuel container ships worth about 1.9196 trillion won in total. [ 1 , 5 , 9 , 10 , 11 , 12 ]
- HD Hyundai Heavy Industries will build two ships and HD Hyundai Samho six. [ 1 , 5 , 7 , 8 , 9 , 10 , 11 , 12 ]
- HMM plans to use the ships on the Far East-India-Mediterranean route. [ 8 , 11 ]
- HMM will also acquire four feeder ships, three of 2,800 TEU and one of 1,700 TEU, by the resale method of taking over contracts for ships already under construction. [ 8 , 11 ]
- HMM's investment this year has passed 6 trillion won. [ 7 , 8 , 11 ]
Still unclear
- The size of HMM's total investment in the 12 ships. Newsis and Asia Economy cite about 2.1 trillion won, while Bloter cites 2.1678 trillion won.
- When HMM announced its investment plan. Asia Economy says HMM announced it on 20 October, while Bloter says HMM announced its ship investment plan on 15 October.
- When deliveries begin and end. Chosun Ilbo, Seoul Economic Daily and Yonhap say deliveries run in sequence to 2029, while Asia Economy and Newsis say HMM will receive the ships in sequence from 2029; Bloter gives a contract period ending 31 December 2029.
- Where HD Hyundai Ecovina is located. Only one Newsis report says the tank plant is in Vietnam; the other documents do not give a location.
What local media are saying
Timeline, local time
- Asia Economy reports that HD Hyundai has won an order for eight LNG dual-fuel container ships from HMM. [ 1 ]
- Newsis flashes a breaking report on the roughly 2 trillion won order for eight ships. [ 2 ]
- Newsis flashes a breaking report on HMM's 2.1 trillion won new investment in 12 container ships. [ 3 ]
- Asia Economy reports HMM's statement that it will invest 2.1 trillion won in 12 ships. [ 7 ]
- Yonhap reports the contract details and HD Korea Shipbuilding & Offshore Engineering's order total for the year. [ 11 ]