South Korea’s HMM reveals $11.4 billion expansion plan

South Korean shipping firm HMM said it would invest 15 trillion won ($11.42 billion) by 2026 to diversify its business portfolio for future growth and expand the company’s fleet, including with LNG-powered vessels.

The strategy includes expanding the fleet capacity of containerships to 1.2 million TEU from the current 820,000 TEU by 2026, according to a statement by HMM released on Thursday.

HMM also plans to boost its bulk business by increasing its fleet to 55 ships from the current 29 ships.

The firm said that it would invest 10 trillion into core assets such as ships, terminals, and logistics facilities and 5 trillion won into diversifying its business.

HMM did not reveal much information regarding the fleet expansion.

In order to slash emissions and contribute to climate goals, HMM said it plans to add to its fleet ships using alternative fuels in the future, including LNG.

“HMM will also make enterprise-wide R&D efforts into the use of carbon-neutral fuels in cooperation with industrial players,” it said.

The firm said last year it had ordered 12 LNG-ready containerships for about $1.57 billion at two compatriot yards.

Daewoo Shipbuilding & Marine Engineering and Hyundai Heavy Industries will each build six 13,000 TEU container vessels.

Prior to that, HMM ordered eight 16,000 TEU LNG-ready containerships at Hyundai Heavy.

Sources recently said that HMM has also chartered two 7,700 TEU LNG-powered vessels.

Navios Maritime Partners, led by Angeliki Frangou, ordered these two ships for $241.2 million at South Korea’s HJ Shipbuilding & Construction (HJSC)

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