Iran, South Korea’s Daewoo sign shipbuilding deal

Business Materials 29 December 2016 14:32 (UTC +04:00)

Baku, Azerbaijan, Dec. 29

By Fatih Karimov – Trend:

The Industrial Development & Renovation Organization of Iran (IDRO) has signed a document with Daewoo Shipbuilding & Marine Engineering Company (DSME) on cooperation in shipbuilding.

The signed memorandum of understanding is aimed at mutual cooperation in developing Iran’s shipbuilding industry and overhauling the large and medium-size ships in the country, the Iranian Industry, Mines and Trade Ministry’s SHATA news website reported Dec. 29.

Under the deal the two sides will form a joint company and the South Korean firm will transfer technical and engineering knowledge to Iran.

The DSME also will provide financial resources as well as basic materials and equipments for the joint venture.

IDRO is one of Iran's largest organizations involved in the country's development and industrialization process.

DSME is the fourth largest shipbuilder in the world and one of the "Big Three" shipbuilders of South Korea, including Hyundai and Samsung.

Earlier in December, the Islamic Republic of Iran Shipping Lines (IRISL) finalized a contract with the South Korean industry giant, Hyundai to buy 10 ships worth $650 million.

Hyundai will build several container ships and oil tankers for IRISL for delivery from 2018.

This is Iran’s first contract to purchase ships from South Korea after sanctions were lifted by implementation of the nuclear deal last January.