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ASIA, BRAZIL, CHINA, CHINA STATE SHIPBUILDING CORP, CONTRACTS, CSSC, FOREIGN INVESTMENT, GLOBAL SHIPPING FIRMS RE, HANWHA OCEAN, HAPAG - LLOYD, INDIA, INTERNATIONAL TRADE, INVESTMENTS, KIM HUN - MIN, MEXICO, MILITARY, NORTH AMERICA, PETROBRAS, SAMSUNG HEAVY INDUSTRIES, SOUTH AMERICA, TRADE, TRADEWINDS, TRANSPETRO, U. S, U. S. DEPARTMENT OF DEFENSE, UNITED STATES
Sophia Klein
Samsung Heavy Industries Approaches 1.9 Trillion Won Contract with Transpetro
Samsung Heavy Industries is close to a 1.9 trillion won deal for nine shuttle tankers with Brazil’s Transpetro. This opportunity arises from increased U.S. pressure on China, following the blacklisting of CSSC. Industry experts anticipate substantial benefits for South Korean shipbuilders amid U.S.-China tensions, highlighting a strategic shift in global shipbuilding dynamics.
Samsung Heavy Industries is nearing an important contract to construct nine shuttle tankers for Brazil’s Transpetro, totaling roughly 1.9 trillion won. Initially a shared contract with a Chinese shipbuilder, increasing U.S. pressure on China enhances Samsung’s chances of securing this order entirely.
The U.S. Department of Defense’s recent decision to blacklist the China State Shipbuilding Corp. (CSSC) due to military ties has created repercussions across global shipbuilding. American companies are prohibited from transacting with CSSC, influencing marine policies of nations engaged in trade with the U.S. This shift presents opportunities for firms like Samsung Heavy Industries.
Reports from industry sources and the global shipping journal TradeWinds reveal that Samsung Heavy Industries is concluding a contract for nine Suezmax-class shuttle tankers, priced at $146.5 million each. The total order value approximates 1.908 trillion won, with deliveries slated for 2027 and 2028.
U.S.-China tensions have notably shifted international business strategies. Firms such as Hapag-Lloyd are now considering relocating their ship orders from China to South Korea’s Hanwha Ocean, as fears of U.S. sanctions grow.
Industry expert Kim Hun-min noted, “Despite concerns about the expansion of facilities and mass orders by Chinese shipyards, the strengthening of U.S. unfair trade sanctions and the U.S. government’s blacklisting of Chinese shipping companies are expected to increase the preference for Korean shipyards.” Another insider confirmed, “Expectations for growth are higher than ever, with potential cooperation in shipbuilding with the U.S. and India, as well as the anticipated benefits from the U.S. stance against China.”
The prospective Transpetro contract underscores the strategic role of South Korean shipbuilders in today’s geopolitical climate. Samsung Heavy Industries has ambitious sales and operating profit goals set at 10.5 trillion won and 630 billion won, respectively. Meanwhile, HD Hyundai Heavy Industries aims for an order target of $18.05 billion, reflecting a 33.7% increase from the previous year.
In summary, Samsung Heavy Industries stands on the verge of securing a significant contract with Transpetro, driven by the shifting dynamics in global shipbuilding and heightened U.S.-China tensions. The blacklisting of the CSSC by the U.S. has opened up opportunities for Korean shipbuilders, enhancing their competitive edge in a changing market. Both Samsung and HD Hyundai Heavy Industries are setting formidable targets, indicating a robust outlook for South Korea’s shipbuilding sector despite the geopolitical challenges.
Original Source: www.businesskorea.co.kr
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