Shipbuilders Focus on High-Value Vessels

November 22, 2005

South Korean shipbuilders are profiting more than ever from selling high-value units such as offshore plants and liquid gas carriers, according to a Korea Times report. Daewoo Shipbuilding and Marine Engineering has already won a record-high $7 billion in building orders this year. Such high performance was largely affected by the sales of four offshore oilrig units, which amounted to $1.9 billion in total. The company also has recorded steady sales of LNG carriers, capped with a $430-million order for a pair of LNG carriers from a Norwegian company last month. The LNG ship has become a lucrative business for shipbuilders, as a 145,000-cubic-meter carrier is now being sold for around $270 million, according to the report. Hyundai Heavy Industry is also benefiting from soaring oil prices and an increase in the demand for gas energy. It has won contracts to build 16 large liquefied petroleum gas (LPG) carriers this year, taking around 60 percent of worldwide market share. The company currently has a backlog of 32 vessels and has delivered 36 LPG carriers worldwide. Source: The Korea Times

Shipbuilders Focus on High-Value Vessels

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