EUKOR CAR CARRIERS has extended and expanded its long-term partnership with 20% shareholders Hyundai and Kia in a deal estimated to be worth US$4.2 billion in revenue.
The Wallenius Wilhelmsen group subsidiary has renewed its contract with Hyundai Motor Car and Kia Motor Car corporations, increasing both duration and volumes.
The new contract contains two major changes from the previous one. The duration has been increased from three to five years and the share of Korean exports has been increased from 40% to 50%. The agreement also entails additional volumes exported from China.
“The contract confirms Wallenius Wilhelmsen`s strong position in Korea and cements our long-term partnership with Hyundai Motor Group,” Lasse Kristoffersen, WW president & CEO, said, while Xavier Leroi, EUKORs CEO and heading the Shipping segment at WW said “The contract is nothing short of historic for EUKOR and Wallenius Wilhelmsen.”
The total estimated net freight revenue is US$ 4.2 billion over the duration of the contract, WW said, and the freight rate increases are in line with market rates for a contract of this nature.
The put and call agreement linked to HMG’s 20% ownership share in EUKOR remains in place and has not been discussed as part of the negotiations.
EUKOR operates a fleet of about 67 specialized PCTCs, with key business being the export of Hyundai and Kia Motors’ vehicles from their plants in Korea, while also serving most other global automotive leaders.
WW has novated a number of its six new 9300 CEU Shaper and eight 11,700 CEU Super Shaper vessels to EUKOR.
