The Korea Herald


Hyundai Heavy denies report on Nigerian shipyard plans


Published : Sept. 18, 2011 - 19:15

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Hyundai Heavy Industries Co. on Sunday denied reports that it will be building a shipyard in Nigeria.

On Friday, Reuters reported that Hyundai Heavy will be investing $7 billion to build a shipyard in the African country, quoting the company’s chief executive Lee Jai-seong.

The company, however, said that while Lee was in Nigeria over the Chuseok holidays, he did not mention any plans for a shipyard or plans to make a major investment in the African country.

According to the company, Lee was in Nigeria while chairman Min Keh-sik was in the Middle East as the company’s executives regularly visit overseas operations during traditional holidays.

“The company is building a plant for producing materials required in industrial plants, as part of plans to secure a share of the market,” a Hyundai Heavy official said. He added that a memorandum of understanding for the plant was signed in June, and works on the site began this month.

“At the time of the MOU, foreign media mistook it for a shipyard, and we think similar mistake was made this time as Hyundai Heavy is the world’s largest shipbuilder.”

In an unrelated press release, the company announced that it signed a contract to build two liquefied natural gas carriers for the Singaporean shipping firm BW Maritime on Friday.

With the addition of the $400 million contract, the value of contracts for ships and marine facilities the company and its subsidiary Hyundai Samho Heavy Industries have won for far this year has been pushed up to $17.1 billion.

The contract, which calls for two carriers with 155,000 cubic meter capacity to be built, also includes options for two additional vessels, the company said.

The two vessels will be delivered during the second half of 2014, and in the first half of the following year, the company said.

By Choi He-suk  (