Korean Shipbuilding Faces Tough Future
According to a May 12 report from The Korean Times, Korean Shipbuilding companies face a tough future. In the 2000s, the shipbuilding business was a cash cow for Korea Inc., which accommodates many of the world's foremost players ― Samsung Heavy Industries, Hyundai Heavy Industries, STX Heavy Industries and Daewoo Shipbuilding & Marine Engineering. The segment was hit hard by the global financial distress. Yearly orders of new ships shrank to about 600 in 2009 from 5,000 in 2007. Although the major shipyards have recovered somewhat this year they will face difficult times down the road. Observers said demand for new vessels is not likely to rebound to more than 2,000 any time soon. Ships do not wear out overnight and the resumption of overall demand will be limited.
(Source: The Korean Times)