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 Reporter August 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

‘Green’ Hybrid-powered Research Vessel Christened

The Maritime Aquarium at Norwalk christened a larger, “greener” new research vessel on Friday, September 26 in preparation for launching a new era in examining,

Nigerian Customer Orders Ninth Damen Dredger

A Nigerian customer has added its ninth Damen dredger to its fleet. The Cutter Suction Dredger type CSD500 was chosen due to the availability of Damen Field Services in Nigeria,

Power and Endurance Ready for Austrailian Waters

Wamalhanha is the final newbuild in a series of six tugs of the Robert Allan Design, RAstar 3200 where her main duties will be terminal activities, escort duties, ship assist, towage duties.

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Offshore Oil Pipelines Pod Propulsion Salvage Ship Repair Shipbuilding / Vessel Construction 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: 0.3078 sec (3 req/sec)