DSME and IDRO sign HoA shipbuilding deal

 Industrial Development and Renovation Organization of Iran (IDRO) and Daewoo Shipbuilding and Marian Engineering co., Ltd. (DSME) have mutually agreed to develop Iran’s shipbuilding industry with the signing of a Head of Agreement (HoA). 

IDRO has been seeking a partner to build vessels in Iran on time for the fleet expansion of Iranian shipping companies; the technical experience of South Korea’s DSME was reported as one of the reasons for its selection.

According to the HoA, signed on 27th December 2016, both parties will establish a Joint Venture Company (JVC) to develop an Iranian shipyard with the cooperation of DSME Okpo Shipyard on engineering and construction of the demanded types of vessels by Iran.

The Iranian Government has already announced its strong support for this business cooperation, requesting support from the Korean Government and DSME in various sectors including financing and providing of material package. 

DSME’s relationship with Iranian shipping companies dates back to 1983, with 38 vessels valued at $1.65 billion successful delivered in that time.