Hyundai Merchant Marine (HMM) has signed a letter of intent with Daewoo Shipbuilding & Marine Engineering (DSME) to build five 300,000 dwt VLCCs with an option of five more vessels.
Chang-keun Yoo, CEO of HMM stated “We currently operate 12 VLCCs which have been foundational to stable profits and enhancing sales competitiveness. We thought this year is the right time to order new VLCCs at historically low newbuilding prices.”
A final agreement with DSME will be concluded by the end of July.
HMM is taking advantage of the $2.28bn funds the Korean government made available last October to local owners to order at local yards.
The VLCCs are HMM’s first new orders since completing its restructuring last year. Up next for the line will likely be a series of small to medium sized boxships.