Hyundai Samho bags $252.3 bn contract for ships

Hyundai Samho bags $252.3 bn contract for ships
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First Published: Thu, Mar 22 2007. 06 53 PM IST
Updated: Thu, Mar 22 2007. 06 53 PM IST
By Kyunghee Park/Bloomberg
Singapore: Hyundai Samho Heavy Industries Co., a unit of the world’s largest shipyard, got an order to build two container vessels valued at 252.3 billion won ($269 million) for Israel’s Zim Integrated Shipping Services Ltd.
The vessels that will can carry 10,000 standard containers each, will be delivered by 24 February, 2010, the Youngam, South Korea-based company said on 22 March.
Hyundai Heavy Industries Co. and other South Korean shipyards grabbed almost half of the global shipbuilding orders last year on growing demand for cheaper products from Asia, increasing the need for vessels. Global trade, which is about 90% carried by sea, may expand 7.6% this year, according to the International Monetary Fund.
Zim Integrated, a Haifa, Israel-based operator of container vessels, on 28 February said its board approved a $266.4 million acquisition of two freighters that can each carry 10,000 boxes. The shipping line, which is controlled by holding company Israel Corp., said it has the option of buying a third ship.
Hyundai Samho Heavy, which doesn’t have shares traded on the Korea stock exchange, expects to secure $4.6 billion worth of orders this year.
Hyundai Heavy, the world’s biggest shipyard, received $2.2 billion in orders in the first two months. It aims to win $18.1 billion of new contracts for ships, engines, offshore platforms and other products this year.
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First Published: Thu, Mar 22 2007. 06 53 PM IST
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