Samsung Heavy to build shuttle tanker JV with Russia’s Zvezda
Samsung Heavy Industries Co., one of South Korea’s three biggest shipbuilders, has agreed with Russian shipbuilder Zvezda to set up a joint venture for construction of shuttle tankers at Zvezda shipbuilding complex in Vladivostok, Russia.
The two companies signed on a term sheet to set up a shuttle tanker joint venture during an economic forum held in Vladivostok, Russia between Sept. 11 and 13, according to Samsung Heavy Industries.
After drawing up a binding contract with more details, the two parties aim to launch the JV that would be capable of building 42,000 to 120,000 deadweight tonnage (DWT) shuttle tankers by the end of this year. A shuttle tanker is a ship used to transport oil from offshore fields to land-based terminals.
Under the contract, Samsung Heavy Industries will provide technological support for designing and building tankers and share knowhow to manage the overall process ranging from parts procurement to shipyard operation. It also is planning to offer training for Russian engineers at its Geoje plant in Korea in exchange for royalties.
Zvezda shipyard is a large-sized shipbuilding and engineering complex in Vladivostok, Russia, which is being expanded as part of efforts to bolster the growth of Russian regions of the Far East and Siberia spearheaded by Russian President Vladimir Putin. Korean shipbuilders have been providing technological support for the shipyard in hopes to earn orders of building materials and others.
On Thursday, shares of Samsung Heavy Industries rose 1.83 percent to close at 7,810 won ($6.95) in Seoul trading.