Korea's Top 3 Shipbuilders' Shaky Performance
The value of contracts signed by Korea's big-three shipbuilders— Hyundai Heavy Industries, Daewoo Shipbuilding and Marine Engineering, and Samsung Heavy Industries — fell far behind the amount they projected for this year, reports The Korea Herald. Meanwhile, Arirang reported that the third quarter earnings of Korea's top 3 are likely to be in the black. Samsung Heavy Industries did not sell a single vessel during the first eight months of this year. Its yearly outcome, however, may differ as the company is currently negotiating a deal worth as much as $2.7 billion.
GasLog Orders New LNG Carrier from SHI
GasLog Ltd. today announces that it has signed a time charter party with Centrica plc. ("Centrica") to charter a vessel for a period of seven years. The vessel, a 180,000 cubic meter LNG carrier with XDF propulsion, has been ordered from Samsung Heavy Industries ("Samsung") in South Korea. Centrica will charter the vessel from GasLog for a period of seven years commencing in the second half of 2019. The daily charter rate is in line with GasLog's average long-term charter rate.
Hercules of Korean Shipbuilding
Samsung Heavy Industries recently achieved a new milestone, successfully carrying a block that weighed as much as 9,283 tons – quivalent to the combined weight of 133,000 adults of average weight, this is the heaviest block ever built in the global shipbuilding industry. Building gigantic structures of the size of apartment buildings or bigger, and putting them together with top-level precision require advanced technology and facility. Super-size cranes to lift them are also a must.
DSME Denounces McKinsey Report
The report by Global consulting company McKinsey & Company that Daewoo Shipbuilding & Marine Engineering (DSME) is least likely to survive among the big three shipbuilding companies has brought about strong opposition from DSME. McKinsey Korea has issued its preliminary report on the state of South Korea's shipbuilding industry, and its conclusions are dire: McKinsey believes that Daewoo Shipbuilding and Marine Engineering may not survive past 2020, due to a forecast negative operating margin and a liquidity shortfall reaching as much as $3 billion.
LNG Carriers, Drillship Orders Increase in Korea Yard
Easing of the Eurozone sovereign debt problems, increased issue of drilling permits in the Gulf of Mexico and growing demand for drillships in Latin America and West Africa have combined to give Samsung Heavy Industries the best order growth visibility among the “Big Three” – Hyundai Heavy Industries and Daewoo Shipbuilding and Marine Engineering. Already, Samsung Heavy Industries has achieved 38 percent of its annual order guidance or $3.8 billion, winning the orders from Inpex’s central processing facilities and two drillships.
$630m Drill Ship is Korea's Most Expensive Ship
The most expensive ship among the orders Korean shipbuilders have won this year is a $630m drill ship. Samsung Heavy Industries won a contract from Sweden in October to build the 97,000-ton drill ship, which is 228 m long and 19 m tall. In terms of price, the ship costs the equivalent of five 300,000-ton crude oil carriers (VLCCs) or two or three LNG ships. The next most expensive orders were also for drill ships, worth $550-590 million in second to fifth, which were won by Samsung Heavy Industries from European countries including Norway. Excluding drill ships, a $284 million LNG ship is the most expensive order, won by Samsung Heavy Industries from Qatar in March.
Orders at Korea's 3 Big Shipyards to Break $30B
Korea's three major shipbuilders are expected to draw in orders worth $30 billion this year, according to a report on http://english.chosun.com. Reports put orders for Hyundai Heavy Industries at $13 billion, Samsung Heavy Industries at $10-11 billion, and Daewoo Shipbuilding and Marine Engineering at $10 billion. Samsung Heavy Industries won the most number of orders as of March with four liquid natural gas tankers, one floating production storage, one offloading vessel, and nine oil tankers.
S. Korean Shipyards Forecast to Win Most LNG Carrier Orders
South Korean shipbuilders are expected to win the bulk of global orders for liquefied natural gas (LNG) carriers this year thanks to their capabilities to build such ships, industry sources said Wednesday. The country's three shipbuilders -- Daewoo Shipbuilding & Marine Engineering Co., Samsung Heavy Industries Co. and STX Shipbuilding Co.-- have clinched the world's 12 LNG ship orders placed this year, they said. Samsung Heavy Industries has received orders for six LNG carriers so far this year, followed by Daewoo with five orders and STX with one. About 40 to 60 LNG ships are expected to be ordered worldwide this year by countries such as Nigeria, Angola, Spain and Australia, according to the sources.
South Korea Shipyards Fear Hull Blocks Shortage
Shipyards in South Korea are worried about a shortage of hull blocks as demand from Japan grows and local block manufacturers convert to shipyards, Korea Times reported. Two block suppliers for Daewoo Shipbuilding & Marine Engineering and Samsung Heavy Industries converted to building ships last year. To cope with declining supplies, Daewoo Shipbuilding & Marine Engineering is now building a block factory in China's northeastern port city of Yantai to begin production early next year. Samsung Heavy Industries has been running a block factory, Samsung Heavy Industries Ningbo, in China since 1997. It is searching for a site to build another in the Chinese northeastern province of Shandong. (Source: Korea Times)
Samsung Heavy Industries to Launch Deal with Japanese Shipbuilder
Photo Credit: SHI It has been reported that South Korea’s Samsung Heavy Industries (SHI) has signed a comprehensive cooperation agreement with the Japanese company, Tsuneishi Shipbuilding Co. The deal is said to be the first of its kind, initiating a strategic collaboration between Japanese and South Korean shipbuilders. The cooperation would entail the construction and repair of cargo vessels and special purpose ships.
Samsung Heavy Industries Wins $771m Contract
Samsung Heavy Industries Co., has received a $771m order to build six container ships from a European company. The vessels will be delivered by July 2010, it said in a filing with the Korea Exchange. The value of the order accounts for 11.2 percent of its recent sales. Source: Yonhap
South Korean VDR Receives DNV Approval
Samsung Heavy Industries (SHI) and Echelon jointly announced the certification of SHI's LonWorks Voyage Data Recorder (VDR) by Det Norse Veritas (DNV). DNV approval is the last hurdle for receiving a Wheel Mark certification -- a European maritime equivalent of the CE Mark. DNV is also able to grant CE Mark certification. VDRs are a key entree into the lucrative ship control system market for Samsung Heavy Industries. "The LonWorks platform is a key component in our strategy to move into the European passenger ship market -- the world's largest and most lucrative," said Dr. Seuk-Kyung Sung, vice president & Ph.D., Digital Business Team, Samsung Heavy Industries Co, Ltd. Dr. Seuk-Kyung Sung added, "Additionally, Samsung Heavy Industries has a focus on the Integrated System concept.
SHI Inks Orders for 5 Ships at Posidonia
Samsung Heavy Industries (SHI) apparently found no troubles in Greece this year, as the company reports inking a deal for five ships at Posidonia 2010, meaning its contracting amount has reach $3.3 billion in 2010, more than double the annual contracting amount of the previous year. SHI won orders for five 158,000 t SUEZMAX-class oil tankers during Posidonia 2010. Samsung Heavy Industries focused on attracting shippers and winning contracts at Posidonia 2010, the ship fair that was held starting on June 5, 2010, and participated in by over 1,700 businesses. CEO Roh In-Sik and the Sales Manager fully supported the Company’s efforts to win more contracts. Their efforts paid off when they secured a contract to build five oil tankers on June 10, 2010, the final day of the fair.
Orders at Korean Shipbuilders to Break $30b
Korea's three major shipbuilders are expected to draw in orders worth $30b this year, Arirang News reported. Industry reports put orders for Hyundai Heavy Industries at $13b, Samsung Heavy Industries at $10-11b, and Daewoo Shipbuilding and Marine Engineering at $10b. Samsung Heavy Industries won the most number of orders as of March with four liquid natural gas tankers, one floating production storage, one offloading vessel, and nine oil tankers. Daewoo Shipbuilding and Hyundai Heavy Industries is also reportedly looking ahead to a stellar year and expected to secure their targets set for 2007 when foreign firms begin placing orders for various projects later on in the year. Source: Arirang News
Samsung, Daewoo Merger on the Way?
As the Korea government is pushing for restructuring of the faltering shipbuilding industry, speculation grows over a possible merger between the country’s two major shipbuilders — Samsung Heavy Industries and Daewoo Shipbuilding and Marine Engineering, reports Korea Herald. South Korea's shipbuilding sector has been facing rough weather. The global economic slowdown is severely impacting the country's so-called big three in the industry: Hyundai Heavy Industries, followed by second-ranked Daewoo Shipbuilding & Marine Engineering and Samsung Heavy Industries.
Creditors Putting Pressure on Samsung Heavy
The restructuring issue of Samsung Heavy Industries (SHI) will spread to the entire Samsung Group as its main creditor Korea Development Bank(KDB) and the financial authorities are putting pressure on the group, reports Business Korea. SHI has submitted its self-rescue plan to its main creditor, the state-run KDB, the Korea Herald reports citing a company official as saying on Tuesday. The plan, aimed at restoring the company’s liquidity, reportedly includes up to 1,500 job cuts, selling of KRW 200 billion worth (USD 169 million) of real estate assets and disposing of stakes in Doosan Engine.
Samsung Heavy $630M Orders for Tankers, Offshore Platform
Samsung Heavy Industries Co., South Korea's third-largest shipbuilder, said it has won orders worth a combined $630m for five oil tankers and an offshore. Under the deal with a Norwegian customer, Samsung Heavy will deliver the oil tankers by 2013. Another deal with a U.S. customer calls for the shipbuilder to deliver the offshore facility by 2013. With the deals, Samsung Heavy has won deals valued at $6.1b in 2010. For the year, Samsung Heavy aims at winning $8b worth of orders.
Seaspan Container Lines Expands
Seaspan Container Lines has placed an order for nine new 4,250 TEU container ships. The new ships will be chartered to the Canadian shipping company, CP Ships. “It is an honor for us to expand our customer base to include CP Ships. Their people, performance, and history are all first class. We are extremely excited about this new relationship,” said Kyle Washington, CEO and chairman of the Washington Marine Group. The new ships will be built at Samsung Heavy Industries, in South Korea. Gerry Wang, director, Sea Span Container Lines said, “this continues our very strong partnership with Samsung. This is the 36th large containership Seaspan has ordered from Samsung Heavy Industries over the past three years.
ABB Wins Electrical Contract for Drillships, LNG Carriers
ABB's order, worth $80 million from Samsung Heavy Industries, is to supply energy efficient drives, motors and electrical power systems for five drilling vessels and two liquefied natural gas (LNG) carriers to be built at Samsung’s shipyard in Korea. The vessels will be used to extract, process and transport oil and gas. Samsung is building five drill ships (three for Seadrill Ltd. in Norway, one for Pacific Drilling S.A in Brazil and one for Ensco Plc in the UK) and two LNG carrier vessels for Golar LNG Ltd in the UK. The vessels will be used for oil and gas exploration and the transportation of liquefied natural gas. ABB will deliver the complete electrical system for the seven vessels…
Samsung Wins Containership Job
Samsung Heavy Industries Co. reportedly won a $240 million order from Germany's Hamburg Sud to build six 3,400-TEU containerships.
Korean Shipbuilders in Red
South Korean shipbuilders are struggling with huge losses stemming from the delivery of low-priced ships and a delay in the construction of offshore facilities such as drill ships. The shipbuilders' earnings are expected to remain in the doldrums until the first half of 2016, although their third-quarter bottom lines may beat estimates after suffering a record loss three months earlier, reports Yonhap. The country's big three shipbuilders - Hyundai Heavy, Daewoo Shipbuilding & Marine Engineering…
Hyundai, Samsung Clash in Drillship Market
According to a report from the Korean Herald, the competition in the market for drillships is heating up with Hyundai Heavy Industries Co. threatening Samsung Heavy Industries Co.’s dominance. Hyundai Heavy has turned its eyes to the market in recent years. The company’s first drillship was delivered late last year and Samsung Heavy has lost its place at the top of the drillship market to Hyundai Heavy. Source: The Korean Herald
Samsung Lands $330 Million in Orders
South Korea's Samsung Heavy Industries Co. said on Saturday it won $330 million in orders to build a liquefied natural gas (LNG) carrier for BP Amoco Plc and two large container vessels for Hong Kong's Orient Overseas Container Line Ltd (OOCL) - scheduled for delivery in early 2004. BP Amoco would pay Samsung Heavy $170 million for a 138,000-cu. m. LNG carrier, a Samsung spokesman said. The two container ships for OOCL, a unit of Hong Kong-based Orient Overseas International Ltd would measure 7,400 TEU.