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 June 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

Research Vessel Concept a first for Voith

The new fisheries research vessel of the Shanghai Ocean University will be a first for Voith in several respects.   It is the first fisheries research vessel

MTU Powers RSN Navy's Littoral Mission Vessel

MTU to power eight Republic of Singapore Navy’s new patrol vessels. Employees and guests, including senior representatives from the Republic of Singapore Navy (RSN) and Ministry of Defence,

ISS Inks Service Pact with Technip

Inchcape Shipping Services (ISS) and Techniphave signed a contract to provide marine agency services and logistics for the Rashid C project in the Middle East. Currently

 
 
Maritime Contracts Maritime Security Maritime Standards Naval Architecture Offshore Oil Pipelines Ship Electronics Ship Simulators Shipbuilding / Vessel Construction 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: 0.1197 sec (8 req/sec)