HD Korea Shipbuilding & Offshore Engineering announced on July 4 that it has signed a construction contract with a European shipping company for two Very Large Ammonia Carriers (VLACs), according to KSOE. The total order value is $328.6 million, and the vessels will be built by HD Hyundai Samho, with delivery expected to be completed sequentially by September 2028.
HD Korea Shipbuilding & Offshore Engineering, an intermediate holding company of HD Hyundai, has successfully secured additional orders for these specialized vessels.
This latest order brings the company's total secured vessels to 118, including one offshore facility, with a cumulative value of $12.59 billion.
This achievement represents 93.2% of the company's annual order target of $13.5 billion, highlighting a strong performance in a challenging economic environment.
The orders span a variety of vessel types, reflecting the diverse needs of the global shipping industry. These include eight Liquefied Natural Gas (LNG) carriers, 52 Petrochemical Product Carriers (PC), 38 LPG/Ammonia carriers, one Ethane carrier, two Liquefied Carbon Dioxide carriers, six Very Large Crude Carriers (VLCC), three tankers, two Pure Car and Truck Carriers (PCTC), one Floating Storage Regasification Unit (FSRU), one offshore facility, and four special-purpose vessels.
The significance of securing orders for VLACs lies in the growing importance of ammonia as a cargo. Ammonia is a critical industrial chemical used in fertilizers and cleaning products and is being explored as a potential future fuel due to its zero-carbon emissions when burned. This aligns with the global shipping industry's push towards greener solutions to meet international environmental regulations.