STX Shipbuilding Co, owner of Europe's largest shipyard, received a contract to build two bulk carriers worth 128.7 billion won (S$167.3 million) from Russia. The 57,000 ton ships will be delivered by May 31, 2009, the Jinhae, South Korea- based company said in a regulatory filing, without naming the buyer.
Demand for iron ore and coal from countries including China and India are increasing the need for more bulk carriers.
The Baltic Dry Index, a measure of shipping costs for commodities, rose 29 per cent this year to a record 11,793 on May 20, according to London's Baltic Exchange.
STX Shipbuilding on Wednesday said that it received a 258.6 billion won contract from Europe to build two very large ore carriers that will be delivered by May 2012.
Shipyards in South Korea, the world's largest shipbuilding nation, are working through order backlogs stretching into 2012 to meet global trading demand. STX Shipbuilding has received US$2.89 billion in orders this year, increasing its backlog to US$17.6 billion.
Its shares advanced 2.9 per cent to 40,450 won as at 11.28 am here. The stock has fallen 19 per cent this year, compared with a 3.2 per cent decline in South Korea's Kospi index.