HMM signs $136Mn funding deal for scrubber installations

Paul Gunton
Paul Gunton
ShipInsight

22 March 2019


South Korean ship operator Hyundai Merchant Marine (HMM) has announced that it has signed an MoU to establish a win-win fund for scrubber installation in preparation for IMO 2020 and to seek cooperation in the shipping-related industries.

The total investment amount will be WON 153.3 billion ($136Mn) which consists of HMM’s investment of WON 46 billion and the rest of the amount of WON 107.3 billion (including Korea Ocean Business Corporation’s guaranteed loan of WON 62.3 billion and a win-win fund of WON45 billion invested by five companies: Hyundai Corporation, SKTI, Hyundai Global Service, DSEC, and PANASIA).

The five companies invested in a win-win fund will get the first priority for the contract negotiation for long-term fuel supply, supply of scrubber equipment, and scrubber installations. HMM plans to complete the scrubber installation on its 19 containerships currently operated by the first half of 2020.

More specifically, two 11,000teu containerships, HMM Promise and HMM Blessing which were delivered to HMM last August from Hanjin Heavy Industries & Construction are the world’s first commercially operating mega container vessels of more than 11,000yeu equipped with large scrubber systems. Furthermore, HMM’s five 300,000dwt VLCCs starting delivery from January 2019, are also to be retrofitted with scrubber systems to respond to the IMO 2020 regulations.

In addition, HMM plans to install scrubbers on its newly ordered twenty eco-friendly mega container ships, including twelve 23,000teu vessels which are expected for delivery in the second quarter of 2020.

An HMM official said “As the IMO’s new environmental regulation is expected to impose a heavy burden on shipowners, carriers not properly prepared for the IMO 2020 will be in a huge trouble. Thus, HMM will fully prepare for the IMO 2020 during the remaining period and will take this regulation an opportunity for a quantum leap.”