STX Offshore & Shipbuilding, a South Korean shipbuilder, has secured an order from Navig8 Product Tankers Inc. to build up to twelve Long Range (LR1) 74,000 DWT tankers. The order is worth USD580m in total.
Due to financial difficulties, STX O&S has entered into the voluntary business normalization program in July 2013 and has since worked on improving its financial status. The creditors, including Korea Development Bank, decided to provide an additional cash injection of KRW 1.8 trillion (USD 1.68 Bil.) on February 19th, to help the business get back on its feet.
Since the appointment of Jung Sung-Leep as the CEO on December 2013, STX O&S has reconstructed its business model to focus on specialized types of vessels with competitive building costs.
This deal is believed to be the first visible result of such efforts. Mr. Jung said that STX O&S will continue its utmost efforts to secure competitiveness in the market with the creditors’ financial support.
STX O&S, March 3, 2014