Al Seer Marine orders four tankers worth Dhs643m, forges ahead with global expansion plans

International Holding Company subsidiary Al Seer Marine has ordered four new IMO II/III product tankers order valued at Dhs643m as part of its global expansion plans for the year.

Korean shipyard and one of the world’s largest shipbuilders of MR Tankers, K Shipbuilding, will build the four new medium-range (MR) IMO II/III product tankers at Jinhae Shipyard.

The tankers are expected to be delivered before the end of Q4 2024. The company’s fleet now totals 12 vessels as the company prepares to transport the transition fuels like methanol, which will help the industry reach net zero.

Considering impending regulatory changes, the 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 a 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, CEO of Al Seer Marine.

YK Jang, CEO of K Shipbuilding, said: “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.” 

Al Seer Marine’s strategic plan set out to grow its business and deploy capital at the best long-term ROI with IRR (internal rate of return) over 20 per cent over 10 years in this order.

The investment will enable Al Seer to further diversify its asset base and geographic business zones in a new segment.

In other news, Al Seer Marine recently entered a strategic joint venture with maritime solutions Dutch company, Damen Shipyards and Singapore-based DTec Industries. The strategic joint venture will consider ventures and local partnerships to sell, build and maintain high-quality and cost-effective marine vessels in the global markets.

Read: IHC subsidiary Al Seer Marine enters strategic JV to build, sell and maintain marine vessels