Recently, South Korea’s mid-sized shipbuilder K Shipbuilding (formerly STX Offshore & Shipbuilding) announced that it has signed shipbuilding contracts with two European shipowners on November 6 and 12, respectively. The contracts include 2+1 115,000 DWT Aframax tankers and 2 50,000 DWT MR product tankers, with a total order value of approximately $4.6 billion. K Shipbuilding has initiated the sale process.
Including the latest orders, K Shipbuilding has received orders for 15 new vessels this year, including option vessels, with a total value of approximately 1.2 trillion won (approximately US$819 million), securing its workload for the next two years. According to statistics, as of the third quarter of 2025, K Shipbuilding has achieved cumulative operating revenue of 899.7 billion won (approximately US$614 million) and operating profit of 84.7 billion won (approximately US$58 million).
K Shipbuilding stated that all newly contracted vessels comply with the enhanced environmental standards of the International Maritime Organization (IMO). While meeting the requirements of the Energy Efficiency Design Index (EEDI) Phase III, the propulsion efficiency is improved by approximately 2.4% compared to traditional ship types through the adoption of a new hull design.
A representative from K Shipbuilding stated: “This order reaffirms our long-standing technical expertise and competitiveness in the medium-sized tanker sector. We will continue to strengthen our leading position in the medium-sized vessel market through ongoing technological innovation and quality enhancement.”
Notably, just days before K Shipbuilding announced the order, industry sources revealed that Greek shipowner JHI Steamship had placed an order with the yard for 2+1 Aframax tankers of 115,000 deadweight tons, priced at $75 million per vessel. Delivery is expected between late 2027 and early 2028. It is speculated that the owner of the aforementioned 2+1 Aframax tanker order is likely JHI Steamship.
It is understood that K Shipbuilding, a key player among South Korea’s mid-sized shipyards, formally initiated its sale process in July this year. South Korea’s private equity firm KH Investment Group (KHI) and United Asset Management Company (UAMCO)—operated by major Korean banks—plan to sell a 99.58% stake in K Shipbuilding for approximately 500 billion won. This valuation, based on a price-to-book ratio of 1.2 to 1.5 times, is considered relatively reasonable by industry observers.
According to South Korean media reports, U.S. private equity firm TPG (formerly Texas Pacific Group) is partnering with South Korean textile and chemical company Taekwang Industrial to acquire K Shipbuilding and has submitted a letter of intent.
K Shipbuilding traces its origins to Dongjo Shipbuilding Industry, established in 1967. Following its acquisition by the STX Group in 2001, it was renamed STX Offshore & Shipbuilding and rose to become the world’s fourth-largest shipbuilder. However, after the 2008 financial crisis erupted, STX Offshore & Shipbuilding suffered severe setbacks due to cash flow constraints stemming from the prolonged downturn in the global shipbuilding industry, compounded by its prior over-expansion into international operations.
After years of restructuring and operational normalization, K Shipbuilding now primarily focuses on constructing product tankers.