On January 30, South Korea’s mid-sized shipbuilder K Shipbuilding announced that it had signed a contract with a European shipowner for 4+2 50,000 DWT product tankers. The total value of the order is 290 billion won (approximately $200 million), with each vessel costing about $50 million.
K Shipbuilding stated that this new fleet of vessels not only complies with the International Maritime Organization’s (IMO) enhanced environmental standards but can also be converted to environmentally friendly propulsion systems using fuels such as liquefied natural gas (LNG) and methanol.
A representative from K Shipbuilding stated: “We have secured repeat orders from existing shipowners through our technological capabilities and quality competitiveness… We will successfully build and deliver the contracted vessels, further solidifying our trust-based relationship with clients.”
It is understood that K Shipbuilding is currently in the process of being sold, making the announcement of this new ship order particularly significant. In July 2025, the KHI-UAMCO consortium—comprising South Korea’s private equity firm KHI and UAMCO, the non-performing asset management company operated by major Korean banks—announced the commencement of K Shipbuilding’s sale process, with an asking price of approximately 500 billion won (or potentially higher).
The latest news indicates that the US private equity firm TPG is interested in acquiring the shipyard. At least three companies have expressed their intention to bid, and the final announcement is expected this year.
It is understood that K Shipbuilding originated from Dongjo Shipbuilding Industry, established in 1967, and was formerly known as STX Offshore & Shipbuilding. After being acquired by the STX Group in 2001 and renamed STX Offshore & Shipbuilding, it once grew to become the world’s fourth-largest shipbuilder. However, following the 2008 financial crisis, STX Offshore & Shipbuilding suffered severe setbacks due to cash flow constraints caused by the prolonged downturn in the global shipbuilding industry, compounded by its prior excessive expansion into international operations.
In 2013, STX Offshore & Shipbuilding commenced debt restructuring; in 2016, the Seoul Central District Court announced approval of STX Offshore & Shipbuilding’s self-rescue restructuring plan; in July 2017, STX Offshore & Shipbuilding concluded its debt restructuring and resumed normal order acceptance. In 2018, creditor Korea Development Bank issued advance payment guarantees for the company, enabling it to secure new orders for two chemical/product tankers.
In 2021, STX Offshore & Shipbuilding was acquired by an investment consortium led by KHI·UAMCO for 250 billion won, securing a 95% stake and subsequently renamed K Shipbuilding. Over the following four years, K Shipbuilding’s new management successfully stabilized production rhythms and reduced costs, helping the once financially troubled shipyard return to a growth trajectory.