High Royalties to Cut Into Shipbuilding Profits

Monday, December 19, 2005
South Korean shipbuilders are paying large royalties on a core foreign technology for manufacturing liquefied natural gas (LNG) carriers, causing a big reduction in their earnings, The Korea Times reports. To build LNG carriers, most South Korean and foreign shipbuilders currently use a membrane containment system developed by Gaz Transport & Technigaz of France, a key technology for freezing and storing gas in tanks for transport. South Korean shipbuilders' profit margin amounts to about 10 percent of a carrier's order price, of which nearly 5 percent is paid to the French company in royalties, according to the report. The nation's shipbuilders charge an average $200 million for each LNG carrier. The nation's top three shipbuilders - Hyundai Heavy Industries, Daewoo Shipbuilding & Marine Engineering, and Samsung Heavy Industries - currently have an order backlog of about 100 LNG carriers. Given the royalty payment ratio, the three shipbuilders will have to pay the French company about $1 billion in the future, which will cut deeply into their earnings; usually 5 to 10 percent of the order price. Source: The Korea Times
Maritime Reporter February 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

CTruk OWSV Enhanced with Volvo IPS

Since the launch of its first-of-class CTruk MPC22 late last year, the East Anglia-based workboat designer and builder informs it has incorporated performance feedback

ST Engineering Makes Management Changes

Singapore Technologies Engineering Ltd today announced that Mr Ravinder Singh will replace Mr Sew Chee Jhuen as President of Singapore Technologies Kinetics Ltd (ST Kinetics).

Danelec Marine Unveils eSERVICEConnect Initiative

Danelec Marine launched its new eSERVICEConnect initiative today in a move to automate and streamline shipboard service for its products worldwide. Danelec’s eSERVICEConnect is an Internet,

Navy

India's Naval Help to Small Indian Ocean Nations

Indian Prime Minister Narendra Modi assigned senior officials in the Ministry of Defence with a task to “identify” and “support” maritime needs of smaller nations

Australia Announces Patrol Boat Tender

Tender announced for Pacific Patrol Boat Replacement Project   The Australian Government announced a Request for Tender (RFT) to replace the Pacific Patrol Boats

6 NATO Ships Begin Joint Black Sea Exercise

Six NATO warships, including Turkish, Bulgarian and Romanian vessels, have arrived to the Black Sea to start joint training exercises.    NATO ships assigned

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Pipelines Pod Propulsion Salvage Ship Electronics Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1958 sec (5 req/sec)