Buoyant Industry, but Analysts Worry about Acquisition Boom

Friday, September 05, 2008

Samsung Heavy Industries' overcrowded shipyard boasts about 40 months' worth of orders, yet analysts say that the seemingly buoyant shipbuilding industry may soon be heading into a multiyear downturn, and that bold efforts to buy up other shipbuilders - currently led by Hyundai Heavy Industries and STX Shipbuilding - could backfire in a costly way, IHT reported.  Analysts say that new ship orders are dwindling and shipbuilding shares have not yet hit bottom. The slowing global economy is hurting worldwide trade and rising steel prices are squeezing shipbuilders' profit margins.  Meanwhile, STX Group, the South Korean company that is the parent of STX Shipbuilding, is finalizing its buyout of Aker Yards, the biggest European ship maker. The deal cost STX $1.3 billion, including the latest $636 million tender offer.  New yards are under construction in and abroad, including shipyards in the owned by Hanjin Heavy Industries, but it is difficult and time-consuming to find a suitable site, negotiate investments and train workers as companies compete for orders that require a high level of technical expertise.
Source:  IHT

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter April 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

Crowley Christens Third LNG-ready Product Tanker

Crowley Maritime Corporation christened the third of four new LNG-ready Jones Act product tankers at a May 5 ceremony at the Julia Street Cruise Terminal in New Orleans.

Eastern Delivers 63rd Towboat for Florida Marine

Eastern Shipbuilding Group, Inc. delivered the M/V Lawrence Campbell (Hull 193) on April 12, 2016, the 63rd 90-foot inland towboat to Florida Marine Transporters, LLC of Mandeville, La.

Two New Tugs Built for TNPA

The South African government’s Operation Phakisa: Oceans Economy initiative has yielded more results with the ceremonial launch of two more tugboats built for

 
 
Maritime Security Naval Architecture Port Authority Salvage Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | 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: 0.0638 sec (16 req/sec)