- Hyundai Samho and BOWON M&P entered into a technical agreement for manufacturing the fuel tanks of LNG propulsion ship on March 4, 2020

Hyundai Samho (Lee Sang-kyun, President & CEO) supports local suppliers in Jeonam Province for win-win and mutual growth.

They Samho held an "agreement ceremony" with its business partner, Bowon M&P Corporation, which is located in Daebul Industrial Complex on 4th of March at the public relations hall to manufacture the fuel tanks for LNG-powered ships.

The agreement allows a local supplier to manufacture LNG-fueled tanks for LNG-powered ships, which have been supplied from distant companies, so that Hyundai Samho can
reduce logistics and management costs, and local suppliers can manufacture high-value products required technical skills.

Under the agreement, Hyundai Samho has a plan to provide its business partner with education, consulting the welding techniques, support of inspection equipment, etc, while Bowon has a plan to secure production bases as soon as possible by strengthening its design capabilities.

Hyundai Samho got the priority to procure necessary products from a local supplier and they expect to reduce costs, including reduction of logistics costs. Hyundai Samho plans to place orders for 9% nickel steel LNG fuel tanks to be installed in the 114,000 DWT Aframax tankers which tankers will be delivered in the next year.

The LNG fuel tanks manufactured by Bowon are C-type cylindrical LNG tank used mainly for ships such as tankers and bulker and uses 9 percent of nickel steel as a main material.
The 9 percent of nickel steel is used as a material for ultra-low-temperature liquid storage containers such as oxygen, nitrogen and LNG, and it maintains strength and toughness under low-temperature environments below minus 163 degrees.
The production of LNG fuel tanks also requires high-level technical skills in welding, heating and design as it is required to secure stability through high-pressure gas storage.
The shipbuilding industry expects a significant increase in orders for LNG-powered ships that can fundamentally reduce harmful emissions.
Since delivering the world's first LNG-powered aframax tanker in July 2018, Hyundai Samho has delivered total seven LNG fueled vessels, and has been a pioneer in LNG-powered ships market in the world. Furthermore, they are expected to deliver the world's first B type 14,800 TEU LNG-powered container and 180,000DWT LNG-powered bulkers in the second half of this year.

" The foundation of the shipbuilding industry in Jeonam Province will be strengthen through this Technical Agreement and local shipbuilders also could secure global competitiveness through cost saving.” an official at Hyundai Samho said.