Hyundai Heavy Industries Co., the world's largest shipbuilder, is seeking to buy 10 percent of a Brazilian shipyard in a bid to win orders from the South American country, industry sources said Wednesday.
Hyundai Heavy is in talks with OSX Brasil SA, a shipbuilding and oil services company, over the deal. The South Korean shipyard will transfer its shipbuilding technology to the Brazilian business partner in return for the stake purchase.
"In a couple of weeks, the two companies are expected to sign a deal," a source said.
Petrobras, Brazil's state-run oil firm, is projected to place orders for offshore oil development vessels such as drill ships and storage facilities, valued at up to US$42 billion.
Hyundai Heavy and local rivals such as Samsung Heavy Industries Co. and Daewoo Shipbuilding & Marine Engineering Co. are competing to clinch orders from Brazil.
In December, OSX Brasil said it bought its first floating production, storage and offloading vessel from Samsung Heavy.