Hanwha Ocean and Samsung Heavy Industries to build 15 vessels worth 4.3 Tril. Won

On March 17, Hanwha Ocean and Samsung Heavy Industries, two of South Korea’s leading shipbuilders, announced substantial contracts exceeding 2 trillion won each.

Hanwha Ocean secured an order for six ultra-large container ships, each with a capacity of 24,000 TEU, from Evergreen, a prominent Taiwanese shipping company. The contract is valued at 2.3286 trillion won, representing 31.3% of Hanwha Ocean’s 2023 sales. The newly ordered container ships measure 400 meters in length and 61.5 meters in width and are equipped with eco-friendly technologies such as dual-fuel LNG engines, shaft generator motor systems (SGM), and air lubrication systems (ALS). According to Clarkson Research (as of February), Hanwha Ocean has constructed 72 out of the 358 ultra-large container ships globally, securing a top market share of 20.1%.

This marks Hanwha Ocean’s first partnership with Evergreen, which operates a fleet of over 200 vessels. A company official highlighted this deal as setting a record price per vessel among recent contracts for similar class container ships.

A shuttle tanker constructed by Samsung Heavy Industries (Photo courtesy of Samsung Heavy Industries)
Samsung Heavy Industries secured an order for nine shuttle tankers from a shipowner in Brazil on the same day. The total value of this contract is 1.9355 trillion won, accounting for 24.2% of its sales in 2023. These Suezmax-class shuttle tankers are scheduled for sequential delivery by 2028 and will be operated by Transpetro, a subsidiary of Petrobras, Brazil’s largest company.

Samsung Heavy Industries has maintained its leadership in shuttle tanker production since building Korea’s first such vessel in 1995. Over the past decade, it has secured orders for 29 shuttle tankers out of a global total of 51, achieving a top market share of 57%.

The recent successes by Hanwha Ocean and Samsung Heavy Industries highlight their ability to overcome challenges posed by Chinese shipbuilders known for competitive pricing strategies since dominating the market in recent years. Hanwha Ocean emphasized eco-friendly technology to secure its contract against these competitors.

Geopolitical factors have also influenced competitive dynamics within the shipbuilding sector. Following U.S. President Donald Trump’s inauguration, intensified scrutiny on China’s shipbuilding industry led to CSSC being blacklisted earlier this year—a move expected to enhance Korean builders’ competitive edge further.

With the latest deal, Hanwha Ocean surpassed orders worth over three trillion won this year—including eight container ships plus one Very Large Crude Carrier (VLCC)—while Samsung Heavy Industries achieved $1.6 billion towards its $9.8 billion order target (approximately equivalent to 14.2 trillion won).

Source: Businesskorea