Korean shipyard moves closer to revival after nine-year hiatus
Gunsan Shipyard secures a letter of intent for four aframaxes before its prospective new owner completes the acquisition.
One of South Korea's largest dormant shipbuilding assets is edging towards a return to full production, potentially easing capacity constraints at a time when the country's major builders remain heavily booked for years ahead.
Gunsan Shipyard, which has not delivered a complete vessel since 2017, has secured its first newbuilding commitment before its prospective new owner has even completed the acquisition of the facility. J Ocean Heavy Industries has signed a letter of intent with an Oceania-based shipowner covering the construction of four aframaxes. Should the agreement convert into a firm contract, complete shipbuilding will resume at Gunsan after an absence of almost nine years.
The development marks an important milestone for a yard originally developed by Hyundai Heavy Industries during the last shipbuilding supercycle to build some of the world's largest commercial vessels. Since delivering its final ship in 2017, the facility has operated only on a limited basis as a block manufacturing yard.
J Ocean Heavy Industries, established by Eco Prime Marine Pacific, the largest shareholder in HJ Shipbuilding & Construction, recently signed an agreement to acquire Gunsan's assets from HD Hyundai Heavy Industries. The transaction is expected to be completed by the end of the year, after which preparations for full-scale production will begin.
Gunsan's biggest competitive advantage is its ability to offer delivery slots far earlier than many established Korean rivals whose orderbooks stretch into the next decade.
