Extension of Ocean Carrier Contract for EUKOR Car Carriers

17.04.2008

Wilh. Wilhelmsen ASA’s (WW) partly owned Korean shipping company EUKOR Car Carriers has agreed with Hyundai Motor Company (HMC) and Kia Motors Corporation (KMC) to extend the freight agreement entered into in 2002 when EUKOR was established.

The new freight agreement runs until 2016, with an intention for a further four year extension. Under the new contract, EUKOR will lift 100% of the volumes out of Korea until 2010. After this, EUKOR will carry the majority of the volume.

The agreement includes a bunker adjustment factor clause, as well as agreed mechanisms for rate adjustments to compensate for cost variations. Other terms and conditions are in line with the previous contract.

In 2007, EUKOR transported approximately two million cars for HMC and KMC out of Korea.

“This agreement is of significant strategic importance for EUKOR,” says Ingar Skaug, group CEO at WW. “It confirms the company’s strong position in Korea, and strengthens EUKOR’s position in the car carrier market.”

EUKOR Car Carriers is owned by WW and Wallenius Lines (40% each) and HMC and KMC (20%).

Wilh. Wilhelmsen press release