Samsung Group's key affiliate Samsung C&T Corporation has jumped into the shipyard repairing business in Angola.
Samsung Group's key affiliate Samsung C&T Corporation has jumped into the shipyard repairing business in Angola. In April last year, Samsung C&T spent around 5 billion won worth of stake to acquire 40 percent of Lobinov, a state-run repair shipyard located 500 kilometers off south of Rwanda, the capital of Angola. Lobinov is the only state-run shipyard in Angola and was established by Estalnave, the affiliate company of Sonangol, a state-run oil company in 1954. Lobinov mainly deals with building and repairing of small- and medium-sized vessels weigh either 10,000 tons or less.
Samsung C&T joined hands with Angola back in 2000. Back then, Samsung C&T signed a memorandum of understanding (MOU) with Angola, accepting an order from the south-central African country, to conduct a $4.4 billion worth of projects on oil refining factory and maritime facility. Though Angola called off the MOU signed in 2000 due to its difficult circumstance, the two sides saw eye-to-eye on the need to establish a stronghold in Angola to engage in resource development businesses in the future.
An official from Samsung C&T said, ?The company decided to acquire stakes from Lobinov as it expects to see acceptable outcomes in the future, even though it only injected a small amount of money.?
Samsung C&T plans to develop Lobinov into the best shipbuilding yard in Africa by implementing Korea"s outstanding shipbuilding technology.