EUKOR Renews Contract with Hyundai Motor Group and Kia Motor Group

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Mfame Editor
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  • EUKOR Car Carriers, part of Wallenius Wilhelmsen, has renewed its contract with Hyundai Motor Car and Kia Motor Car, increasing the duration and export volumes.
  • The renewal strengthens Wallenius Wilhelmsen’s position in Korea, solidifying long-term relations with Hyundai Motor Group.
  • The contract duration has been extended from three to five years, and the share of Korean exports has increased from 40% to 50%.
  • The contract also covers increased exports from China.
  • The total estimated net freight revenue over the contract duration is USD 4.2 billion.

According to News Web, EUKOR Car Carriers, a key part of the Wallenius Wilhelmsen group, has renewed its contract with Hyundai Motor and Kia Motor Corporations, marking a significant milestone in its partnership with the automotive giants. The new contract increases the duration from three years to five years, reflecting the growing commitment between the companies. Additionally, the share of exports from Korea has risen from 40% to 50%, indicating an expansion in the scope of the partnership.

Strategic and Financial Impact

This contract renewal is seen as historic for both EUKOR and Wallenius Wilhelmsen, further cementing their strong position in Korea. Xavier Leroi, CEO of EUKOR and head of the Shipping segment at Wallenius Wilhelmsen, emphasized the strategic importance of the agreement in strengthening the companies’ market standing. The total estimated net freight revenue over the contract period is projected to be USD 4.2 billion, with freight rates reflecting current market trends for contracts of this nature.

Additional Export Volumes

In addition to increased Korean exports, the new contract includes additional volumes of exports from China, enhancing EUKOR’s global shipping operations. These changes are expected to improve operational efficiency and expand market reach.

Unchanged Ownership Agreement

Despite the new contract terms, the put and call agreement tied to Hyundai Motor Group’s 20% ownership share in EUKOR remains in effect and was not altered during the recent contract negotiations. This ensures continuity in the long-standing relationship between EUKOR and Hyundai Motor Group.

 

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Source: NewsWeb