In light of the announcement made by the company on Wednesday, it is quite likely that investors will be tracking Philly Shipyard ASA (OTC:AKRRF) over the coming days. Yesterday, it emerged that the company’s only operating subsidiary, Philly Shipyard Inc., had inked a Memorandum of Understanding with the HD Hyundai Group subsidiary, Hyundai Heavy Industries Co. Ltd.
The MoU had been inked for the purpose of exploring the possibilities of a potential business relationship in relation to United States government shipbuilding projects as well as MRO (maintenance, repair, and overhaul) projects of the future. The MoU had been signed by the two parties during a visit from representatives of Hyundai Heavy Industries (HHI) to Philly Shipyard on April 12. Key officials from both companies were present at the time of the signing.
The Chief Executive Officer and President of Philly Shipyard, ASA Steinar Nerbovik, spoke about the development yesterday. He noted that HD Hyundai and Philly Shipyard ASA shared a long track record of collaborations. He went on to note that the management at Philly Shipyard ASA was honored by the prospect of cooperation with HH1 on future United States government shipbuilding projects. The Chief Executive of the Naval and Special Ship Business Unit at HHI, Dr.
Won Ho Joo shared his thoughts about the potential collaboration as well. He stated that everyone at the company looked forward to the possibility of growing the presence of HHI in the lucrative worldwide defense market through collaboration with United States-based companies. Specifically, HHI was looking into collaborations with those companies that were involved in business with the government and worked on the building of military vessels as well as the MRO business. It could be a good time to possibly add the Philly Shipyard ASA stock to your watch lists.
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