HD Hyundai Marine Solution wins $60 mn ship maintenance contract
Hyung-Kyu Kim
Jul 29, 2024 (Gmt+09:00)
HD Hyundai Marine Solution Co., HD Hyundai’s marine industry comprehensive solution company, signed its largest long-term maintenance contract to date.
The company announced on Monday that it signed a $60 million long-term service agreement (LTSA) with a European shipping company. This is the largest single transaction amount in the company's history.
Under the contract, HD Hyundai Marine Solution will supply parts and equipment for 38 ships in the shipping company’s fleet and provide stable maintenance services through dedicated engineers until 2029.
Generally, shipping companies and shipowners use LTSAs to minimize downtime for parts replacement, repairs, and maintenance, maximizing ship operational time.
The global ship aftermarket, currently estimated at $10 billion, is attracting attention as a stable source of revenue.
HD Hyundai Marine Solution is forecasting future demand for parts and equipment, optimizing inventory levels, and strengthening global sales through a dedicated LTSA organization and overseas subsidiaries.