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Japanese, South Korean yards get 10 tanker orders

Nov. 17, 1997

Japanese and South Korean shipyards are bustling with new tanker orders. Sumitomo Corp., Tokyo, will build six tankers for a Russian firm, and South Korea's Halla Engineering & Heavy Industries Co. received orders for four vessels from two foreign shipping firms.

Japanese and South Korean shipyards are bustling with new tanker orders.

Sumitomo Corp., Tokyo, will build six tankers for a Russian firm, and South Korea's Halla Engineering & Heavy Industries Co. received orders for four vessels from two foreign shipping firms.

Russian tankers

Sumitomo has received orders for six 100,000 dwt double-hulled crude oil tankers from Novorossiisk Shipping Co., Russia's largest shipping company, sources close to the Japanese trader said. The orders are worth 30 billion yen in total. The Russian government holds a 25% stake in the shipping company. NKK Corp. will build the ships at its Tsu plant in Mie Prefecture, with delivery scheduled during 1998-2000.

Sumitomo received the first four orders in the spring, and two more recently. The trading company is seeking orders for tankers under an arrangement in which it extends loans to shipbuilders to help finance construction.

Russian shipping companies are replacing their fleets with double-hulled tankers to reduce the risk of oil spills.

South Korean order

Halla signed an $85 million contract with state-run Shipping Corp. of India (SCI) to build two 110,000-dwt-class crude oil tankers.

Halla also received an $85-million contract from Singapore's Sembawang Marine & Logistics Ltd. to build two 170,000-dwt-class bulk carriers.

All four vessels are scheduled to be delivered in second half 1999 and first half 2000. Halla has a backlog of 43 vessels-enough to keep its yard fully occupied until early 2000.