South Korean shipbuilder Daewoo Shipbuilding and Marine Engineering Co., Ltd. (DSME) and the Industrial Development and Renovation Organization of Iran (IDRO) have signed an outline agreement to cooperate on developing the shipbuilding Industry in Iran.
Under the deal with the Industrial Development and Renovation Organisation of Iran, Daewoo Shipbuilding will work on constructing a shipyard and related facilities in Iran, according to Yonhap News Agency.
The parties plan to establish a joint venture company (JVC) to develop an Iranian shipyard with cooperation from DSME Okpo Shipyard on the engineering and construction of the types of vessels needed by Iran.
The shipyard said that the Iranian side wants financing from the South Korean government
, and shipbuilding-related technology, and operation know-how from Daewoo Shipbuilding.
Daewoo Shipbuilding said the deal will help it make inroads into Iran’s shipbuilding market, and export related equipment.
Since 1983, Daewoo Shipbuilding secured a combined $1.65bn worth of orders to build a total of 38 ships from Iran’s state-run shipping firms, such as National Iranian Tanker Co.