South Korea’s Gunsan Shipyard is set to resume full-scale shipbuilding for the first time since 2017 after J Ocean Heavy Industries signed a letter of intent (LOI) to build four 114,000-dwt crude oil and petroleum product tankers for a shipowner from Oceania.
The shipyard was built by HD Hyundai Heavy Industries in 2010 to expand its production capacity but suspended shipbuilding operations in 2017 due to a lack of orders. Since then, the facility has been used only to manufacture hull blocks for other HD Hyundai shipyards.
The yard is now in the process of being acquired by J Ocean Heavy Industries. The new company is backed by Echo Prime Marine Pacific, part of Dongbu Engineering & Construction, with HJ Heavy Industries also participating in the project. The acquisition is valued at approximately KRW 780 billion.
The four vessels covered by the LOI are designed to carry both crude oil and refined petroleum products, allowing operators to switch cargoes depending on market demand. They will feature high-efficiency propulsion systems and an advanced hull design, reducing fuel consumption by more than 10% compared to existing ships of the same class.
Gunsan Shipyard has a 700-meter dry dock and was originally designed to build 10–12 vessels per year, including ultra-large ships. Under the agreement with HD Hyundai, the yard will continue producing hull blocks for the company for up to three years, while also receiving technical support during the restart.
Construction is expected to begin next year after refurbishment work is completed, with delivery of the first vessels planned the following year.
According to the new owners, the lack of an existing order backlog gives the yard an advantage, allowing it to offer immediate construction slots at a time when many major shipyards are fully booked. The company says it has already received multiple inquiries from shipowners seeking faster delivery schedules.
