News and Updates on HD Hyundai
HGS Leads Eco-friendly Ship Retrofit Business
Hyundai Global Service (HGS) stands ahead in the eco-ship retrofit service business covering the installation of SOx Scrubbers and Ballast Water Treatment System (BWTS) and creates a blue ocean in the shipbuilding industry.
HGS achieved $120 million in new orders of the business during the first half of 2018, more than seven times those compared to the last year. HGS won the retrofit orders for 47 ships including SOx scrubber for 18 ships and 29 BWTS for 29 ships, respectively. HGS had contracts with many domestic and overseas shipowners from Japan and Hong Kong. The ship types comprise a variety of range from VLCC and VLOC to capesize bulk carriers.
Notably, it is more meaningful that HGS is the first Korean company to supply, install and test run a SOx scrubber on a turkey basis. On June 25, HGS signed a technical cooperation MOU to retrofit 35 ships among Hyundai Merchant Marine’s fleet of 54 ships on a turnkey basis.
Due to the strengthened regulations of the International Maritime Organization, shipowners are mendated to fit or install BWTS from September 2019, and the emission regulation of sulfur oxides will come into effect in January 2020. Accordingly, it is expected that the BWTS and SOx scrubber market is set for a steady growth to reach KRW 5~6 trillion in 2020.
HGS officer said, “The retrofit service market has a great potential to grow because of stricter environmental regulations. Responding to various demands of shipowners through outstanding engineering capability and technology, and broad network with various partners in the shipbuilding supply chain, HGS tries its best to be a leader in the market.” Meanwhile, HGS is consolidating its position in retrofit business for eco-ships for AMP and LNG/LPG fueled propulsion as well as BWTS and SOx scrubbers.