Nov. 6 (UPI) — Korea Shipbuilding & Offshore Engineering is ready to win a brand new contract to construct 10 Very Giant Crude Carriers as South Korea’s shipbuilding {industry} grapples with the coronavirus pandemic.

KSOE, which is owned by Hyundai Heavy Industries, is near securing the order and has signed a letter of intent with Everest Korea Finance Advisory in Seoul to construct the ships with varied shoppers, TradeWinds and Yonhap reported Friday.

Every ship is priced at $85 million. Everest Korea, funded by Chinese language funding agency Everest Enterprise Capital, may very well be looking for a long-term constitution contract for the ships and South Korean technicians to advise on shipbuilding, or consulting.

The deal isn’t closing. Solely when Everest Korea secures a long-term constitution contract for the ships, will it result in a finalized order, the experiences say.

Hyundai Heavy Industries has had a tough yr because of the international financial downturn. The corporate has but to reopen its manufacturing middle at Gunsan Shipyard in South Korea, KBS reported Wednesday.

The shipyard has been closed for 3 years amid an industry-wide droop and elevated competitors from Chinese language shipbuilders, however Hyundai may nonetheless be all in favour of buying Doosan Infracore, a South Korean equipment producer, in accordance with KBS.

The COVID-19 pandemic has had an impression on Hyundai’s workers, however wage bargaining has resumed between labor and administration, in accordance with Information 1.

Hyundai’s labor and administration met on Thursday to debate calls for, however managers stated working hours may very well be adjusted to deal with the difficulty of an “idle workforce,” as constructing orders have slowed this yr.

Hyundai has been profitable in latest bids. Final week the corporate was named the popular bidder for a domestically developed next-generation destroyer following a controversial courtroom ruling.