On October 24, Samsung Heavy Industries announced the signing of a contract with a Liberian shipowner for the construction of three crude oil carriers. The total order value amounts to 341.1 billion won (approximately $240 million), with an estimated unit price of $80 million per vessel.
With the announcement of this new order, Samsung Heavy Industries has secured orders for 30 new vessels worth approximately $5.2 billion this year. Commercial vessel orders reached $4.5 billion, achieving 78% of the department’s annual order target of $7.8 billion. The offshore engineering division is advancing toward its $4 billion annual goal through the Coral FLNG and Delphin FLNG projects.
By vessel type, this includes 7 LNG carriers, 9 shuttle tankers, 2 ethane carriers, 9 crude oil tankers, 2 container ships, and 1 preliminary contract for an offshore facility.
South Korean media said that the crude oil tankers undertaken by Samsung Heavy Industries this time is planned to be built in a Vietnamese shipyard. This is an important part of Samsung Heavy Industries’ promotion of its “global operation strategy” and marks that its production base is expanding from South Korea to Southeast Asia.
In early October, rumors circulated within South Korea’s industry circles that Samsung Heavy Industries was poised to establish a new shipyard in Vietnam. According to informed sources at the time: “Samsung Heavy Industries is evaluating the feasibility of constructing a new shipyard in Vietnam for building small-to-medium-sized vessels. The company believes establishing a new facility offers greater advantages in enhancing construction efficiency compared to acquiring an existing local shipyard.”
South Korean industry insiders believe: “If Samsung Heavy Industries establishes a shipyard in Vietnam, it will enhance its price competitiveness and potentially secure orders for small and medium-sized bulk carriers and tankers that it previously failed to win. Although Vietnam’s shipbuilding expansion plans took a long time to materialize due to past financial difficulties, the country has now achieved profitability and is expected to accelerate the process.”
Currently, Samsung Heavy Industries is focusing on transforming its Geoje Shipyard into a technology R&D center, concentrating on building high-value-added vessels such as LNG carriers, eco-friendly container ships, and FLNG units.
For standardized vessel types like crude oil tankers, Samsung Heavy Industries will expand its approach to design and major equipment procurement, with shipbuilding split among partner shipyards in China, Southeast Asia, and South Korea. For example, Samsung Heavy Industries has outsourced eight Suezmax tankers to PaxOcean engineering Zhoushan and has assigned two tankers ordered by New Shipping to South Korean shipyards.
A Samsung Heavy Industries spokesperson stated: “Through recent partnerships with India’s SDHI Shipyard and the U.S.-based Bigger Marine Group, we are continuously expanding our global network. This initiative aims to establish a sustainable, competitive, and flexible production system.”