SEOUL-- Daewoo Shipbuilding and Marine Engineering Co., a major shipyard here, said Monday that it has secured a 470 billion won (US$420 million) order to build five very large crude carriers (VLCCs).

Under the deal with Hyundai Merchant Marine Co., South Korea's top shipping firm, Daewoo Shipbuilding, said it will deliver the vessels by September 2019.

Last week, Hyundai Merchant said it plans to spend 470 billion won 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