SEOUL– Daewoo Shipbuilding & Marine Engineering Co., a major shipyard here, said Friday that it is in talks with the country’s leading shipping firm, Hyundai Merchant Marine Co., over the construction of five very large crude carriers (VLCCs).

In a regulatory filing, Daewoo Shipbuilding said the two, however, have yet to reach an agreement on the terms of the deal.

On Thursday, Hyundai Merchant said it plans to spend 470 billion won (US$419 million) to buy five new VLCCs and 182 billion won to acquire two container vessels.

In April, the two signed a letter of intent for the potential deal.

The Daewoo-Hyundai deal is the first under a government-initiated program to revive the shipping industry.

Daewoo Shipbuilding was saved from bankruptcy after its creditors arranged a 6.7 trillion won rescue package. Winning new orders is critical for the shipbuilder who needs to solve its liquidity problems.

 

Source: Yonhap News Agency