News Content

STX Offshore & Shipbuildnig Wins substantial Order to Build up to Twelve Tankers

STX Offshore & Shipbuilding, a South Korean shipbuilder, has signed a contract with Navig8 Product Tankers Inc. of Singapore to construct up to twelve 74,000 DWT tankers (included optional vessels) on February 28th. The gross contract price approximately KRW 620 billion (US$580 million).

STX O&S, due to financial difficulties, has entered into the Voluntary Business Normalization Program in July 2013 and worked on improving its financial status. The creditors, including Korea Development Bank, recently decided to provide additional cash injection of KRW 1.8 trillion (USD 1.68 Bil.) on February 19th, to promote normalizing the business.

Since the appointment of Jung Sung-Leep as a CEO on December 2013, STX O&S has reconstructed its business model to focus on the specialized types with competitive building costs.

This deal is believed to be the first visible result of such efforts. Mr. Jung said that STX O&S will continue its utmost efforts to secure competitiveness in the market with the creditors’ financial support.
Source: STX Offshore & Shipbuilding