Al Seer Marine places $175m shipbuilding order amid expansion push

The new vessels are expected to be delivered before the end of fourth quarter of 2024

Gunther Alvarado, chief operating officer of Al Seer Marine, signed the agreement with Y K Jang, chief executive of K Shipbuilding. Photo: Al Seer Marine

Al Seer Marine, a unit of Abu Dhabi-based International Holding Company, has placed an order worth Dh643 million ($175m) for the construction of four new tankers as the company continues to focus on expanding its fleet to boost growth.

The medium-range “IMO II/III product tankers” will be built by Korea's K Shipbuilding at Jinhae Shipyard, Al Seer Marine said on Tuesday in a regulatory filing to the Abu Dhabi Securities Exchange, where its shares are traded.

The new ships are expected to be delivered before the end of the fourth quarter of 2024.

With the latest order, Al Seer Marine's fleet totals 12 vessels, boosting its value to more than Dh2.3 billion.

“Al Seer Marine is very serious about becoming a global market leader across different marine sectors,” said Guy Neivens, chief executive of Al Seer Marine.

The new order “is yet another endorsement of our global expansion strategy”, he said.

Al Seer Marine, which had assets worth Dh11.5bn at the end of June, has a diversified portfolio and offers services such as management and training, high-tech boatbuilding, unmanned systems development and manufacturing.

The company this year acquired two liquefied petroleum gas tankers valued at a combined Dh246m and has large gas carriers currently under construction as part of a joint venture with BGN International. It is also expanding its freight solutions for bulk cargo globally to meet growing demand.

Al Seer Marine aims to close Dh36.7bn worth of maritime deals in the next 10 years, it said in October.

The new tankers are being designed to be ready to adapt to new fuels such as ammonia and methanol amid transition efforts, the company said.

“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,” said K Shipbuilding chief executive Y K Jang.