American investment fund TPG Inc. (formerly Texas Pacific Group), together with South Korean textile and chemical company Taekwang Industrial, has submitted a letter of intent (LOI) to acquire the K Shipbuilding shipyard in Jinhae, South Korea.
K Shipbuilding’s current shipyard has accumulated approximately 30 newbuild tankers, making it one of the most dynamic companies in the medium-tonnage tanker construction sector. The potential deal reflects the growing interest of international investors in Korean shipbuilding, amidst high shipyard utilization rates, increasing global tanker demand, and the transition to more energy-efficient fleet types.
Founded in 1967 as STX Offshore & Shipbuilding, K Shipbuilding, after financial difficulties and restructuring, saw its assets acquired by a South Korean investment consortium in 2021. The company was then renamed K Shipbuilding and began the process of restoring and restarting its production facilities.
It is currently controlled by a South Korean consortium led by United Asset Management Company (UAMCO) and KH Investment.
If the negotiations are successful, control is expected to be transferred to the TPG + Taekwang Industrial consortium.
