Hyundai Merchant Marine (HMM), South Korea’s largest shipbuilder, is in discussion with Daewoo Shipbuilding & Marine Engineering (DSME), over the construction of five very large crude carriers (VLCCs).
The two parties, however, have yet to reach an agreement on the terms of the agreement, according to yonhap news.
Last April, HMM inked a Letter of Intent with DSME for the five VLCCs, containing options for five more ships. The company said that it is going to spend USD 419 million, to purchase the five new VLCCs.
In addition, earlier this week, HMM revealed plans to spend also USD 162 million to acquire two large container ships. The contract was secured by Philippines-based Hanjin Heavy Industries and Construction.
The Daewoo-Hyundai deal aligned with the Korean government’s initiative to boost the shipping industry.