Hanwha Ocean Wins $1.06 Billion Order for Six LNG-Fueled Container Ships

Hanwha Ocean (042660.KS) has won an order worth more than 1.5 trillion won to build eco-friendly container ships for a major Taiwanese shipping line, securing a large follow-up contract just one year after its first deal with the carrier.

The shipbuilder said on the 3rd that it received an order from Taiwan's Yang Ming Marine Transport for six 13,650-TEU container ships powered by dual-fuel engines running on liquefied natural gas. The contract is valued at about 1.5527 trillion won ($1.06 billion). The vessels will be built at Hanwha Ocean's Geoje shipyard and delivered to the owner in phases through the second half of 2029.

The order comes one year after Yang Ming placed its first newbuilding contract with Hanwha Ocean in September last year, ordering seven 15,880-TEU LNG dual-fuel container ships. Hanwha Ocean said the fact that a major global carrier entrusted a large follow-up order to the same shipyard within such a short period reflects the owner's confidence in its design capabilities and process management.

The ships will be fitted with a Type-B LNG fuel tank built with high-manganese steel, a technology Hanwha Ocean developed on its own. High-manganese steel offers a cost advantage over conventional nickel alloy steel or aluminum while maintaining strong toughness and strength at temperatures as low as minus 163 degrees Celsius, improving both the safety and the economics of the fuel tank. The vessels also apply the latest hull optimization technology to improve fuel efficiency and cargo capacity.

"This contract demonstrates the solid partnership between Yang Ming and Hanwha Ocean and our shared commitment to building a more competitive and sustainable fleet," Yang Ming Chairman Tsai Feng-ming said. "We look forward to the successful delivery of these six vessels and to further strengthening the long-term cooperation between the two companies."

Hanwha Ocean Chief Executive Kim Hee-cheol said the trust in the company's design and production technology and its project execution capability, confirmed through the first project, had led to another large follow-up order within a year. "We will continue to raise our differentiated eco-friendly technology and quality competitiveness so that our cooperation with Yang Ming can develop into a long-term partnership," the CEO said.

The global container ship market has moved past a phase of large-scale capacity expansion and is being reshaped around the replacement of aging vessels and the shift to eco-friendly fleets in response to tighter environmental rules from the International Maritime Organization. Hanwha Ocean expects orders from major carriers to concentrate on shipyards with proven eco-friendly technology and stable construction capabilities, and is maintaining a selective order strategy focused on high-value, eco-friendly vessels.