STX Cuts Big Deal with Russia

STX to build shipbuilding yard in Russia, first time for Korean builder; also wins order for two LNG tankers










STX Group signed an MOU with the United Shipbuilding Corp. (USC) to build a shipbuilding yard at a cost of $1 billion at the International Economic Forum in St. Petersburg, Russia, on June 17, the company said recently.
Chairman Kang Duk-soo of STX Group signed the agreement along with his counterpart Chairman Sergey Frank of USC at Lenexpo, the convention center where the international event took place from June 16-18.
The MOU with USC, a state-run shipyard, calls for STX Group to handle the project on a turnkey basis as well as a transfer of shipbuilding know-how from STX Offshore and Shipbuilding Co. to USC, the group said.
STX said it is in talks with a number of countries to export its shipyard building know-how, including Brazil and the United Arab Emirates, and expects more such orders from around the world in the future.
Many countries with huge natural resource reserves like China, Brazil and India want to build shipyards in their countries, but don't have the professional know-how to do so. USC of Russia recognized STX's competitive edge in building shipyards and operations and thus assigned the Korean company to handle the project. Currently, STX Group manages a huge shipbuilding complex in Dalian, China, 5.5 million square meters in size, which is equipped with various equipment and facilities to build offshore structures and ship blocks, engine assemblies and more, boosting the shipyard's productivity and effectiveness.
The Russian shipping company must also have considered STX Group's 18 shipyards spread over eight countries from Korea and China to Europe with segregated know-how for managing shipbuilding yards.
STX officials said they expect to get more orders for shipyard construction projects as resource-rich nations have been making moves to build their own shipyards. We have the expertise to build tailor-made, large shipbuilding yards by mixing construction know-how and a competitive edge over other shipbuilders, they said.
In the meantime, STX also signed a contract for two LNG tankers from Sovcomflot (SCF) Shipping Co. of Russia ordered in May, the first such order that a Korean shipbuilder ever received from Russia. STX Chairman Kang Duk-soo met with Russian President Dmitry Medvedev and Deputy Premier Igor Sechin at the St. Petersburg International Economic Forum and discussed such matters as the exploration for natural resources and the development of the Russian shipbuilding industry. Kang also met with Chairman Mikelson of Novatek, a Russian gas company engaged in LNG exploration in western Siberia and discussed a joint development of LNG tankers.
Chairman Kang signed the official contract for STX at Lenexpo in Russia's second largest city, while his counterpart Sergey Frank signed for SCF with officials of Gazprom watching the event. STX Offshore and Shipbuilding announced on May 31 that it got a $400 million order for two LNG tankers for $400 million from SCF, both of them membrane type as large as 170,200 cubic meters. The Russian order could expand to four LNG tankers for an optional order worth $800 million.
STX Shipbuilding, jointly with STX Europe, developed an ice-breaking shuttle LNG carrier and in August 2010 it delivered a 173,600 cubic-meter LNG tanker to Elcano Shipping Co. of Spain for the first time for the shipbuilding company.
STX Shipbuilding plans to install a heating apparatus on the LNG tankers to minimize the loss of steam through evaporation while LNG is being transported on tankers. The shipyard will also install equipment to catch steam produced from the engine room and use it to generate power on tankers to cut energy use by an average of 5 percent on the new LNG tankers it is to build. STX Shipbuilding officials said they won the contract as a result of the shipbuilder's efforts to develop new types of tankers that can help the exploration of the North Pole region for natural resources and they will try harder to land orders for offshore plants in the near future, too. nw

A scene at the signing of an MOU between STX Group and United Shipbuilding Corp.of Russia, on July 17 to build a shipbuilding yard in St. Petersburg, Russia, at the cost of $1 billion. The signing took place at Lenexpo Convention Center where Chairman Kang Duk-soo of STX Group and his counterpart of USC Sergey Frank are seen.

Photo on Courtesy of STX

Copyright(c) 2003 Newsworld All rights reserved.
3Fl, 292-47, Shindang 6-dong, Chung-gu, Seoul, Korea 100-456
Tel : 82-2-2235-6114 / Fax : 82-2-2235-0799