J Ocean Heavy Industries has signed a letter of intent (LOI) with shipowners in the Oceania region for the construction of four 114,000-ton crude oil and petroleum product carriers, marking the first prospective completed-vessel project for Gunsan Shipyard in nearly nine years.
The LOI was announced on 29 June while the company continues the acquisition process for Gunsan Shipyard. If converted into a formal shipbuilding contract, the project would represent the first completed-vessel order for the yard since its last delivery in July 2017.
The planned vessels are 114,000-ton crude oil and petroleum product carriers developed by HJ Shipbuilding & Construction. The design is intended for transporting both crude oil and refined petroleum products and incorporates an updated hull form with high-efficiency propulsion technology to improve fuel efficiency. The vessels are also designed to comply with International Maritime Organization (IMO) environmental regulations.
On 26 June, HD Hyundai Heavy Industries signed an asset transfer agreement for Gunsan Shipyard with J Ocean Heavy Industries, a company established by Ecoprime Marine Pacific, the largest shareholder of HJ Shipbuilding & Construction. The asset transfer process is continuing, with the acquisition expected to be completed by the end of the year before production preparations begin.
According to J Ocean Heavy Industries, inquiries from domestic and international shipping companies have continued since Ecoprime Marine Pacific and HD Hyundai Heavy Industries signed a memorandum of understanding in March. The company said Gunsan Shipyard’s absence of an existing completed-vessel order backlog could support relatively short delivery schedules, while the yard is also capable of constructing ultra-large vessels.
The LOI is viewed as an important milestone while the acquisition remains in progress. If it results in a firm contract, expectations are that the restart of completed-vessel construction will support work for ship equipment suppliers and partner companies, while creating employment opportunities and extending effects across related industries, including steel and logistics.
J Ocean Heavy Industries said it will continue preparations for the reopening of Gunsan Shipyard and aims to develop the facility into a global production base for eco-friendly vessels.
