JE Ocean Heavy Industries, currently advancing the acquisition of the Gunsan Shipyard, has secured letters of intent (LOIs) for another six tankers.
On September 21, JE Ocean Heavy Industries announced that it had signed LOIs with an Oceanian shipowner for the construction of six tankers, comprising two 157,000 DWT crude oil tankers and four 114,000 DWT vessels designed to transport both crude oil and petrochemical products.
Combined with the LOIs secured in June for four 114,000 DWT crude oil and petrochemical carriers, JE Ocean Heavy Industries has now accumulated orders for a total of ten tankers, further boosting market expectations for the resumption of operations at the Gunsan Shipyard.
According to earlier reports, on June 26 of this year, JE Ocean Heavy Industries signed an agreement with HD Hyundai Heavy Industries to acquire all relevant tangible assets of the latter’s Gunsan Shipyard for 780 billion KRW (approximately 567 million USD). The parties are currently advancing the subsequent stages of the acquisition process. JE Ocean Heavy Industries plans to finalize the acquisition by December 31, 2026; following facility overhauls and upgrades to shipbuilding equipment, the company intends to commence shipbuilding operations in early 2027 and deliver its first new vessel in 2028.
The two vessel types covered by the agreement are next-generation models independently developed by HJ Shipbuilding & Construction. Notably, the 114,000 DWT crude oil and petrochemical product carrier complies with International Maritime Organization (IMO) environmental regulations and offers the flexibility to transport either crude oil or petroleum products, enabling shipowners to maximize operational efficiency and profitability based on market demand.
Regarding the securing of orders prior to the completion of the acquisition, JE Ocean Heavy Industries noted that the Gunsan Shipyard is capable of building ultra-large vessels and offers rapid delivery times. As the shipyard currently has no existing order backlog, it can meet shipowners’ schedules and deliver vessels on time; consequently, the shipowner was willing to secure production capacity at the Gunsan facility in advance.
Data indicates that the Gunsan Shipyard covers an area of 1.8 million square meters and features a 1-million-ton class dry dock (700 meters long), a 1,650-ton gantry crane, and 1.4 kilometers of quay length. It is capable of simultaneously constructing two Very Large Crude Carriers (VLCCs), each approximately 300 meters in length with a deadweight tonnage exceeding 200,000 tons.
At its peak, the Gunsan Shipyard employed over 6,000 workers and had an annual production capacity of approximately 20 vessels. However, due to the prolonged downturn in the global shipbuilding market, orders for its core products—bulk carriers and container ships—shrank drastically, eventually forcing the shipyard to halt operations in 2017. Production resumed in October 2022, and a sale agreement was signed in June 2026.