J Ocean Heavy Industries Restarts Completed Vessel Construction at Gunsan Shipyard After 9 Years

"Oceania Shipowners Sign LOI for Construction of Four 114,000-Ton Tankers"

The prospects for resuming the construction of completed vessels at Gunsan Shipyard—which had been halted for nearly nine years—have brightened once again. Even before finalizing the asset transfer process, J Ocean Heavy Industries, which is currently pursuing the acquisition of Gunsan Shipyard, has secured its first letter of intent (LOI) for ship construction, accelerating the normalization of the shipyard's operations.

On June 29, J Ocean Heavy Industries announced that it had signed a letter of intent with shipowners in the Oceania region for the construction of four 114,000-ton crude oil and petroleum product carriers.

This LOI marks the first project for the construction of completed vessels at Gunsan Shipyard in approximately nine years since the last completed vessel was delivered in July 2017. If this LOI leads to a formal contract, Gunsan Shipyard will have an opportunity to reestablish itself as a hub for constructing completed vessels.

Previously, on June 26, HD Hyundai Heavy Industries signed an asset transfer agreement for Gunsan Shipyard with J Ocean Heavy Industries, a company established by Ecoprime Marine Pacific, the largest shareholder of HJ Shipbuilding & Construction. Currently, follow-up procedures for asset transfer are underway, and the acquisition process is expected to be completed by the end of the year, after which preparations for production will commence.

Industry insiders are emphasizing the significance of securing the first LOI for ship construction while the acquisition process is still ongoing.

A representative from J Ocean Heavy Industries stated, "Since Ecoprime Marine Pacific and HD Hyundai Heavy Industries signed a memorandum of understanding in March, we have received continuous inquiries from domestic and overseas shipping companies about ship construction," adding, "Gunsan Shipyard is considered competitive because it has no backlog of completed vessel orders, allowing for rapid delivery, and is capable of building ultra-large vessels."

The vessels to be constructed are 114,000-ton crude oil and petroleum product carriers developed by HJ Shipbuilding & Construction. They are designed to transport both crude oil and petroleum products, and with the application of the latest hull forms and high-efficiency propulsion technologies, they are assessed to be more fuel efficient than existing vessels of the same class. They are also regarded as eco-friendly ships that can meet International Maritime Organization (IMO) environmental regulations.

Locally, there are expectations that if this LOI leads to a formal contract, it will further accelerate the normalization of Gunsan Shipyard. The resumption of completed vessel construction is expected not only to expand work for ship equipment manufacturers and partner companies, but also to create jobs and have ripple effects across related industries such as steel and logistics.

The acquisition of Gunsan Shipyard is known to be led by Ecoprime Marine Pacific, the largest shareholder of HJ Shipbuilding & Construction. Chairman Cha Jeonghoon, an entrepreneur from North Jeolla Province, has presented plans to enhance competitiveness by combining HJ Shipbuilding & Construction's design capabilities, eco-friendly ship technologies, and global network with Gunsan Shipyard. The local community is watching closely to see if this will become a turning point for restoring the shipbuilding industry ecosystem and revitalizing the regional economy.

A representative from J Ocean Heavy Industries said, "We will make thorough preparations so that we can repay the support of Gunsan citizens and North Jeolla residents, and nurture Gunsan Shipyard as a global production base for eco-friendly vessels."

A vessel of the same class for which J Ocean Heavy Industries signed a letter of intent for construction with a shipowner in the Oceania region.

This content was produced with the assistance of AI translation services.