Hyundai Samho sets up Russian joint venture to expand biz opportunities

SEOUL, June 4 (Yonhap) -- South Korean shipbuilder Hyundai Samho Heavy Industries Co. said Sunday that it has joined forces with a Russian shipyard to expand business opportunities going forward.

The company, an affiliate of Hyundai Heavy Industries Group, said the deal to form a new company with Zvezda Shipbuilding was reached on Friday in Saint Petersburg. Zvezda is part of the Far Eastern Shipbuilding and Ship Repair Center (FESRC), a state-operated entity.

The newly created Zvezda-Hyundai will be 49 percent owned by Hyundai Samho, with the Russian partner controlling 51 percent stake.

Under the Technical Support Agreement, Hyundai Samho will provide support in the ship design, marketing, personnel and training areas.

The South Korean shipbuilder said that Zvezda-Hyundai plans to launch Aframax tankers from 2018 onwards at the Bolshoi Kamen yard near Vladivostok.

It said the latest deal is an extension of the mutual cooperation pact with Russia's state-owned Rosneft oil company reached in September 2016. That agreement calls for the sharing of technology related to the building of merchant vessels and general project management experience.

"The latest agreement opens new revenue sources for Hyundai Samho and can allow the shipyard to make headway in the Russian market," a corporate source said.

Hyundai Samho so far this year secured a deal to build four 114,000-ton liquefied natural gas tankers from Sovcomflot, Russia's state-run maritime shipping company.

yonngong@yna.co.kr
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