Al Seer Marine, the global player across multiple marine sectors and a subsidiary of UAE-based International Holding Company (IHC), has ordered new four IMO II/III product tankers valued at $175 million as part of Al Seer’s global expansion push this year.
K Shipbuilding, the leading Korean shipyard and one of the world’s largest shipbuilders of MR Tankers, will construct the four new medium-range (MR) IMO II/III product tankers at Jinhae Shipyard, which are expected to be delivered before the end of Q4 2024.
This means that the Al Seer Marine fleet now totals 12 vessels as the company prepares to transport the transition fuels like methanol, which will help the industry reach net zero. In anticipation of the impending regulatory changes, these tankers will be LNG-ready and are being designed to be potentially ready to adapt to new fuels such as ammonia and methanol.
Mr. Guy Neivens, Chief Executive Officer of Al Seer Marine said that “Al Seer Marine is very serious about becoming a global market leader across different marine sectors. Our team is pushing hard, this is yet another endorsement of our global expansion strategy. We are working together with our partners to fulfill the need for modern and efficient tonnage in the markets we serve.”
The agreement was signed at the company’s office in Abu Dhabi by Mr. YK Jang, CEO of K Shipbuilding, and Mr. Gunther Alvarado, Chief Operating Officer of Al Seer Marine, in the presence of both organizations’ senior executives.
“Demand for tankers has been on the rise since April this year, and building new ships is not something the industry can reverse overnight, however, with K Shipbuilding’s solid industry experience, we are confident we will be able to deliver this order on schedule. The economists point to the need to build new ships to meet the pending environmental regulations forecasting that shipbuilding orders will rebound in 2024, and today’s Al Seer Marine order confirms the market demand,” commented Mr. Jang.
Al Seer Marine’s strategic plan set out to grow its business and deploy capital at the best long-term ROI with IRR of over 20 percent over 10 years in this order. The investment will enable Al Seer to further diversify its asset base and geographic business zones in a new segment.
