Complete ship production at Gunsan Shipyard is expected to resume after about nine years.

According to J Ocean Heavy Industries on June 29, it successfully signed a letter of intent  with a shipowner in the Oceania region to build four 114,000-ton class crude oil and petroleum product carriers.

Gunsan Shipyard stopped building complete ships following the delivery of a 114,000-ton class refined oil carrier in July 2017. HD Hyundai Heavy Industries has since partially operated the shipyard only as a block production plant for ship components.

On June 26, J Ocean Heavy Industries, established by Echo Prime Marine Pacific, the largest shareholder of HJ Shipbuilding & Construction, signed an asset transfer agreement for Gunsan Shipyard and is proceeding with follow-up procedures. It secured the letter of intent for shipbuilding before the acquisition process was completed.

It is explained that inquiries from global shipping companies are continuing. A representative of J Ocean Heavy Industries said, “Since Echo Prime Marine Pacific and HD Hyundai Heavy Industries signed a memorandum of agreement (MOA) last March, shipbuilding inquiries have continued,” and conveyed, “Currently, Gunsan Shipyard has no order backlog for complete ships, allowing for fast delivery, and it is capable of building ultra-large vessels, so global shipping companies show high interest.”

The ships for which the letter of intent was signed this time are a next-generation hull form developed by HJ Shipbuilding & Construction. Evaluated as possessing both eco-friendliness and economic efficiency, they were designed to transport various petroleum products as well as crude oil, enabling flexible operation according to market conditions and cargo demand.

With the application of high-efficiency propulsion technology and the latest hull form, a fuel savings effect of about 10% or more compared to existing vessels of the same class was expected. They are being evaluated as able to effectively respond to the environmental regulations of the International Maritime Organization (IMO).

If it leads to the conclusion of the main contract, revitalization of the regional economy was expected. Once shipbuilding begins in earnest, direct and indirect employment creation effects, along with a simultaneous rise in the operation rates of local equipment suppliers and partner companies, make it highly likely that the regional shipbuilding ecosystem will recover to the level before the operation was suspended.

As it is known that Chairman Cha Jeong-hoon, an entrepreneur with ties to Jeonbuk, played a decisive role in the acquisition of Gunsan Shipyard, expectations in the local community are growing.

A representative of J Ocean Heavy Industries stated, “Thanks to the support of Gunsan citizens and Jeonbuk residents who have believed in and supported the revival of Gunsan Shipyard for a long time, we are able to raise the anchor for complete ship construction once again,” and stated, “We will develop Gunsan Shipyard into a core base for the production of global eco-friendly ships, thereby contributing to the regional economy and the development of the Republic of Korea’s shipbuilding industry.”

Source:Business Korea