Hanwha Ocean (042660) has won a contract worth more than 1.5 trillion won to build eco-friendly container ships for a major Taiwanese shipping line, securing a large follow-up order just a year after their first deal in a sign of confidence in its technology and construction capability.
The company said on the 3rd that it won an order from Taiwan's Yang Ming Marine Transport for six 13,650-TEU liquefied natural gas dual-fuel container ships valued at about 1.5527 trillion won (roughly $1.1 billion). The vessels will be built at Hanwha Ocean's Geoje shipyard and delivered in stages through the second half of 2029.
The order comes a year after Yang Ming placed its first newbuilding contract with Hanwha Ocean in September last year for seven 15,880-TEU LNG dual-fuel container ships. Hanwha Ocean said the decision by a major global carrier to award a large follow-up order to the same shipyard within such a short span reflects recognition of its design capability and process management.
The ships will be fitted with a Type-B LNG fuel tank built with high-manganese steel, developed in-house by Hanwha Ocean. Compared with conventional nickel alloy steel or aluminum, high-manganese steel offers a cost advantage while retaining strong toughness and strength at temperatures as low as minus 163 degrees Celsius, improving both the safety and the economics of the fuel tank. The vessels also apply the latest hull-form optimization technology to improve fuel efficiency and cargo capacity.
"This contract demonstrates the strong partnership between Yang Ming and Hanwha Ocean and the shared commitment of both companies to building a more competitive and sustainable fleet," Yang Ming Chairman Tsai Feng-ming said. "We look forward to the successful delivery of these six vessels and to further strengthening the long-term cooperation between the two companies."
Kim Hee-cheol, chief executive of Hanwha Ocean, said trust in the company's design and production technology and its project execution capability, confirmed through the first project, had led to another large follow-up order within a year. "We will continue to raise our differentiated eco-friendly technology and quality competitiveness so that our cooperation with Yang Ming can develop into a long-term partnership," he said.
The global container ship market has moved past a phase of large-scale capacity expansion and is being reshaped around the replacement of aging vessels and the shift to eco-friendly fleets, as carriers respond to tighter environmental rules from the International Maritime Organization. Hanwha Ocean expects orders from major shipping lines to concentrate on shipyards with proven eco-friendly technology and stable construction capability, and is pursuing a selective order strategy centered on high-value, eco-friendly vessels.
A day earlier, Hanwha Ocean won an order for three very large gas carriers from an owner in Oceania worth 477.8 billion won, bringing its total orders over the two days to 2.0305 trillion won.
Including the Yang Ming deal, Hanwha Ocean has won orders this year for 17 very large crude carriers, six LNG carriers, six container ships, three very large ammonia carriers, three VLGCs, one wind turbine installation vessel, one special-purpose vessel and one onshore plant project — a total of 38 units worth about $7.07 billion.
