ABU DHABI, UAE: K Shipbuilding, the leading Korean shipyard and one of the world’s largest shipbuilders for MR Tankers, will construct the four new medium-range (MR) IMO II/III product tankers at Jinhae Shipyard, which are expected to be delivered to Al Seer Marine (ADX: ASM) before the end of Q4 2024.

Al Seer Marine, an International Holding Company (IHC) subsidiary, has announced a new four IMO II/III product tankers order valued at AED 643 million as part of Al Seer global expansion push this year.

Al Seer Marine strategic plan set out to grow its business and deploy capital at the best long-term ROI with IRR over 20% over 10 years in this order. The investment will enable the Al Seer to further diversify asset base and geographic business zones in a new segment.

This means that Al Seer Marine fleet now total 12 vessels as the company prepares to transport the transition fuels like methanol, which will help industry reach net zero. In anticipation for the impending regulatory changes these tankers will be LNG ready and are being designed to be potentially ready to adapt to new fuels such as ammonia and methanol.

“Al Seer Marine is very serious about becoming global market leader across different marine sectors. Our team is pushing hard, this is yet another endorsement of our global expansion strategy. We are working together with our partners to fulfill the need for modern and efficient tonnage in the markets we serve.” said Guy Neivens, Chief Executive Officer of Al Seer Marine.

The agreement was signed at the company’s office in Abu Dhabi by YK Jang, CEO of K Shipbuilding and Gunther Alvarado, Chief Operating Officer of Al Seer Marine in the in the presence of both organizations’ senior executives.

“Demand for tankers has been on the rise since April this year, and building new ships is not something the industry can reverse overnight; however, with K Shipbuilding’s solid industry experience, we are confident we will be able to deliver this order on schedule.

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.” commented YK Jang, CEO of K Shipbuilding.