Hyundai Heavy's JV shipyard project in Saudi Arabia gathers pace
Hyundai Heavy's JV shipyard project in Saudi Arabia gathers pace
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Hyundai Heavy Industries Co., a major shipyard here, said Thursday that its push to build a ship repair and shipbuilding joint venture in Saudi Arabia has gathered pace, with the Middle Eastern country officially launching the project.
Hyundai Heavy and Saudi Arabia's state-run oil firm Aramco have been seeking to build a joint shipbuilding and maintenance yard and a maritime engine facility in Saudi Arabia.
Officials of Hyundai Heavy Industries and Aramco pose in Saudi Arabia on Nov. 30, 2016. (Courtesy of Hyundai Heavy Industries) Officials of Hyundai Heavy Industries and Aramco pose in Saudi Arabia on Nov. 30, 2016. (Courtesy of Hyundai Heavy Industries)
In November of last year, the South Korean shipyard signed a memorandum of understanding (MOU) with Aramco for the project.
Hyundai Heavy said Saudi King Salman bin Abdulaziz Al Saud visited the shipyard site in Ras al-Khair earlier this week and attended a ceremony to declare the start of the construction of the King Salman ship repair and shipbuilding complex.
The joint complex will be built by 2021 at the cost of 5 trillion won (US$4.28 billion), according to Hyundai Heavy.
If the project goes smoothly, Hyundai Heavy will be well-positioned to win shipbuilding deals from Saudi Arabia.
Hit by mounting losses and falling demand for new ships, Hyundai Heavy has mapped out 3.5 trillion won worth of self-rehabilitation measures, including asset sales and a cut in the workforce, in order to stay afloat.
SEOUL, Dec. 1 (Yonhap) sam@yna.co.kr
http://english.yonhapnews.co.kr/news/2016/12/01/0200000000AEN20161201009400320.html
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