Reducing Activities: company scaling back some business operations while continuing others

Stay Scaling Back

Samsung Heavy Industries Co., Ltd. is one of the largest shipbuilders in the world and one of the "Big Three" shipbuilders of South Korea. Geoje is one of the largest shipyards in the world, having 3 dry docks and 5 floating docks.

Reducing Activities: company scaling back some business operations while continuing others

Stay Scaling Back
Glob.Revenue, mln.USD
6131
The Company Statement
June 13, 2024

Plans to move forward with the construction of three more ice-breaking LNG carrier hulls for Russia. Samsung has been delivering blocks and equipment for five of them to Zvezda, the Russian shipyard that is assembling the carriers, after receiving South Korean government approval. Samsung Heavy Industries has been hit by sanctions against Russia following the Russia-Ukraine war. The company’s order worth 4.85 trillion won (approximately $3.7 billion) from a Russian client before the war broke out was blocked by sanctions and the Russian client abruptly called off the contract. "The Russian client unilaterally claimed that the contract was not fulfilled during a negotiation process,” Samsung Heavy Industries said in a public disclosure on June 12, 2024 with respect to 10 liquefied natural gas (LNG) carriers and seven shuttle tankers for the North Sea ordered from Russia’s Zvezda Shipyard in 2020 and 2021. “The Russian client notified Samsung Heavy Industries of the termination of the contract and demanded that Samsung Heavy Industries return its down payment of US$800 million and its delayed interest to the Russian client."

June 13, 2024Samsung Heavy Industries pauses production amid potential sanctions on Russia
December 26, 2023Samsung Heavy says it has stopped making blocks for Russian shipyard's LNG carriers
May 17, 2022Samsung Heavy to press ahead with three LNG hulls for Russian yard
April 21, 2022Samsung Heavy Industries Completes Delivery of Tanker to Sovcomflot
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