South Korea’s Daewoo Shipbuilding and Marine Engineering (DSME) is setting up a joint venture shipbuilding company with three Iranian state-backed organisations, it has been confirmed. DSME has signed an agreement with the Industrial Development and Renovation Organisation (IDRO) of Iran, National Iranian Tanker Company (NITC) and Islamic Republic of Iran Shipping Line (IRISL).
IDRO had for one time been seeking a partner with the necessary technological know-how and experience to build vessels in Iran to meet the fleet expansion requirement companies of Iranian shipping companies. After a lengthy period of negotiations, DSME was finally selected to be its shipbuilding partner.
According to the Heads of Agreement (HoA) that has been signed, the parties will establish a company that will develop an Iranian shipyard, with the cooperation of DSME Okpo Shipyard, to build tankers and other vessel types required by Iran. The joint venture has the strong support of the Iranian government which has promised to assist in various aspects of the venture, including financing and the provision of the necessary materials.
DSME already has strong relationship with the Iranian shipping sector, having built a total of 38 vessels for Iranian shipping companies, including NITC and IRISL since 1982.