Marine link
 

South Korean Curbs On Shipbuilding To End Amid Controversy

South Korea's Ministry of Industry, Trade and Energy said that next year it will end its regulation of domestic shipbuilding, despite warnings from three major domestic shipbuilders of a market glut.

"The government has no intention of extending the current rationalization program — limiting new entrants and capacity expansion — which expires at the end of this year," a ministry official responsible for domestic shipbuilding affairs reportedly said, adding that the government will let shipbuilders expand capacity according to their own judgment. The rationalization program was imposed in 1989 by the government, which feared redundant investments. The government's decision allowing shipbuilders greater self-control followed a joint proposal to the ministry by three of the nation's largest shipbuilders, Hyundai Heavy Industries Co., Daewoo Shipbuilding & Heavy Industries, and Hanjin Heavy Industries, urging that Samsung Heavy Industries' plan to expand its shipbuilding capacity by one million tons be abolished. The nation's combined shipbuilding capacity is currently estimated at 4.5 million tons a year. The three companies asse that increased capacity in curre: market conditions will cause a gli and excessive competition amor domestic companies.

"An expansion of shipbuildir capacity at a time like this when virtual recovery in the order of shij building is yet in sight will exace bate demand-supply balance," the reportedly asserted in the joint pn posal. The companies fear the cu rent rush of orders to South Korea shipbuilders may prove short-live< brought about by external factoi such as the stiff appreciation of tb Japanese yen, making Korean ship much cheaper.




Shipbuilding / Vessel Construction History

American Shipbuilding Issociation
BENELUX: Carving IPs Niche
BUYING INTO THE FUTURE
Changes at Malta Drydocks
Chesapeake Shipbuilding Launches New Vessel
Consolidation of Power
CVN-76: BEYOND VIRGINIA
DOT/Industry Partnership Results In $37 Million In Cooperative Agreements
Europeans Hang On With Technology
Gladding-Hearn Builds Whale-Watching Cat
Increasing Orders Put South Korea Ahead Of The Competition
Kockums To Launch New Generation Of Shipbuilding Systems
Lucent Technologies Gets Contract With Chinese Shipbuilder
Marinex, Ingalls & Metro Machine Tanker Project Wins MARITECH Funds
McDermott Enters Russian Shipbuilding Venture
Navy's Newest Amphibious Assault Ship Commissioned At Ingalls
New Version Of Catia Offers Valuable New feels
NKK Corp. Launches Icebreaking Patrol Ship
NNS lays Keel For First Of Nine Double Eagle Product Tankers
Opportunities For Cooperation Between U.S. And Japanese Marine Equipment Manufacturers
Pick Up Speed?
Power Alliance Wins DARPA Contract
Pragmatic Research
Royal Schelde Expands Commercial Work
Shipbuilders Announce Incorporation Of American Shipbuilding Association American Shipbuilding Association
Siemens Podded Electric Drive Provides Operational Advantages
South Korean Curbs On Shipbuilding To End Amid Controversy
Study: U.S. Yards Must Focus On Technological, logistical Improvements To Be Competitive Internationally
U.S. Named Official Partner Country At SMM '96
World Shipbuilding Associations Address Commercial Fleet Safety
 
rss feeds | archive | privacy | history | articles | contributors | top news | contact us | about us | copyright