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Friday, January 19, 2018

Daewoo Heavy News

Daewoo Split: Painful But Necessary

The splitting of Daewoo Heavy Industries Co., the shipbuilding and machinery unit of South Korea's ailing Daewoo Group, into three firms should boost shareholder value, analysts said. A shareholders meeting earlier in the week approved a plan to split the company into Daewoo Shipbuilding and Marine Engineering Co., machinery maker Daewoo Heavy Industries and Machinery Ltd., with Daewoo Heavy Industries Co. taking the remaining operations. Daewoo Heavy is among the 12 Daewoo Group firms put under a creditors-led debt restructuring program in late August last year as the group was teetering on the brink of insolvency. "The split of Daewoo Heavy is a painful but inevitable choice for shareholders," said an analyst at Daishin Securities.

Daewoo Split Predicted To Add Value

The splitting of Daewoo Heavy Industries into three firms should boost shareholder value, analysts said. The companies will eventually benefit from the split, analysts said, calling it a "painful but inevitable choice." Analysts said the shipbuilding and machinery units would be reborn as clean companies, while Daewoo Heavy Industries Co. would become a paper company, shouldering most of the company's debts. However, they said, Daewoo Heavy will eventually be liquidated in four or five years once it settles its internal debt issues. A shareholders meeting approved a plan to split the company into Daewoo Shipbuilding and Marine Engineering Co, machinery maker Daewoo Heavy Industries and Machinery Ltd., with Daewoo Heavy Industries Co taking the remaining operations.

Daewoo Heavy Approves Split Plan

Daewoo Heavy Industries Co. shareholders approved a plan to split the firm into three companies, officials said. The plan will go into effect May 1. Under the plan, the company will split into shipbuilding firm Daewoo Shipbuilding and Marine Engineering Co., machinery maker Daewoo Heavy Industries and Machinery Ltd. and Daewoo Heavy Industries Co. for the remaining operations. Daewoo Heavy is among the 12 Daewoo Group firms put under a creditors-led debt restructuring program in late August last year, as the group was teetering on the brink of insolvency.

Daewoo Heavy President Safe For Now

While many of troubled Daewoo Group’s top executives have been ousted by South Korean creditors who rescued the troubled Daewoo Group from collapse last July, it appears that the head of the shipbuilding division will stay. Creditors voted to retain Daewoo Heavy Industries President Shin Young-kyun as president of its shipbuilding division and picked Yang Jae-shin, president of Daewoo Motor's Poland subsidiary, to lead Daewoo Heavy's machinery division.

Daewoo To Invest In Joint Manufacturing Operation

South Korea's Daewoo Heavy Industries Co. will invest $4.5 million in a joint ship engine manufacturing operation between state-run Hanjung and Samsung Heavy Industries Co., the Ministry of Commerce, Industries and Energy said. The ministry said Daewoo Heavy will hold a 17 percent stake through its investment in the newly named HSD Engine Co. Hanjung will hold a majority 51 percent stake, and Samsung Heavy 32 percent. Hanjung and Samsung will also pay $11 million and $6.8 million, respectively along with Daewoo's investment to raise HSD's equity capital to $26.8 million from the current $4.5 million. The ministry said most of the new capital would go to facility investment and the rest to research and development.

Daewoo Heavy May Join Engine Joint Venture

Daewoo Heavy Industries Co. has reportedly expressed willingness to join Korea Heavy Industries and Construction Corp. in a planned ship engine joint venture. Executives from Daewoo, Korea Heavy and Samsung Heavy Industries Co. are to meet Dec. 4 to discuss Daewoo's proposal to join the venture. Korea Heavy and Samsung have agreed to set up a 60-40 joint venture that will take over ship engine manufacturing operations of the two companies starting on Jan. 1. Daewoo Heavy officials confirmed it had expressed its intention to join the venture, but did not give more information.

Australian Company Mulls DHI Stake

South Korea's Daewoo Heavy Industries has received a letter of intent from Australia's New Castle Heavy Industry expressing interest in taking a stake in its shipbuilding unit. While exact terms of the potential deal are not yet available, it is believed that DHI would be willing to sell up to a 30 percent stake. The world's second largest shipbuilder is one of 12 debt-laden Daewoo Group firms that creditors hope to reform and sell off. Daewoo Heavy is expected to be split into three units covering shipbuilding, machinery and a company to manage its debts.

Daewoo Heavy Not Likely To Spin Off Soon

Heavy Industries, one of the 12 Daewoo Group affiliates put under a debt rescheduling program, is not likely to be separated from its parent group any time soon, a creditor bank official said. The official at Korea Development Bank said details of the workout plan for Daewoo Heavy are now under review and a spinoff would take place in two to three months. "Action plans for reshaping the company could come out by the middle of this month. But a separation from Daewoo Group would take at least two to three months under commercial laws," he said. Lee Hun-jai, head of the Financial Supervisory Commission, overseeing the nation's corporate restructuring, said he had expected Daewoo Heavy to be separated from the group within this month.

Daewoo Heavy Gets $110 M For Two Ships

Daewoo Heavy Industries Co. Ltd., a unit of South Korea's Daewoo Group, won $110 million orders to build two ships for Norway and Hong Kong, company officials said. Daewoo Heavy said in a statement that the Wilhelmsen Group of Norway placed an order for a RoRo ship worth $75 million. The Tai Chong Cheang Group of Hong Kong ordered a 173,000 dwt class bulk carrier for $36 million. Each of the contracts with the companies included an optional order to buy further identical ships, officials said. The RoRo carrier will be delivered by February 2001, and the bulk carrier is to be delivered by the end of 2001, Daewoo officials said.

Daewoo Plans To Pay Debt Early

The shipbuilding unit of South Korea's troubled Daewoo Group expects a net profit and more profitable orders in 2001 as it charts a new, independent course. Daewoo Shipbuilding & Engineering Co, split off from troubled Daewoo Heavy Industries last October, said it aimed for net profit of $156.7 million this year, buoyed by strong global orders. "It looks certain that Daewoo Shipbuilding has a great business year ahead of it," said Song Sang-hoon, analyst at Dongwon Economic Research Institute. It also plans to repay 200 billion won of debt this year to free itself from a debt restructuring program undertaken by its creditors in 1999, Daewoo officials said. "Our losses in the past stemmed from problems of other Daewoo affiliates," shipyard spokesman Kim Do-kyun said.

Daewoo To Spin Off Two Divisions

Daewoo Group reportedly plans to spin off Daewoo Electronics and the shipbuilding division of Daewoo Heavy Industries prior to their sale.

Daewoo Heavy Wins $180M Italian Order

Daewoo Heavy Industries Co Ltd reportedly won a $180 million order from Italy's Moby Lines to build two luxury car-ferry ships.

Daewoo Heavy Wins $140M Greek Order

Daewoo Heavy Industries Co. Ltd. reportedly won a $140 million order from Greece's Kristen Navigation Inc. to build two very large crude oil carriers.

Tribon Solutions Signs Contract With Daewoo Heavy Industries

Tribon Solutions has signed a $ 4.5 million, 3-year contract with Daewoo Heavy Industries to supply and implement the Next Generation of the current Tribon M1 product on Windows NT. This Tribon Mx Series development will lead to Tribon M2 and Tribon M3 systems. Tribon Mx Series development will be focused to greatly extend the Outfitting and Data Management functions in the current Tribon M1. Daewoo will contribute both requirements and partial financing for the Tribon Mx Series development. This contract is based on the already successful implementation of Tribon at Daewoo for commercial hull design and the complete use of both hull and outfitting functions at Daewoo Special Ships Division for in particular the Korean KDX1 Frigate and some recent orders for Passenger RoRo vessels.

Koreans Consider Marine Propulsion Consolidation

Korea Heavy Industries and Construction Corp. said Daewoo Heavy Industries has expressed willingness to join it in a planned ship engine joint venture. A spokesman for the government-run machinery manufacturer said executives from Daewoo, Korea Heavy and Samsung Heavy Industries were due to meet to discuss Daewoo's proposal to join the venture.

Daewoo Reports Hefty Losses

Daewoo Heavy Industries Co. (DHI)announced a loss in the first- half of this year of 337.7 billion won ($302.9 million), compared with net income of 53.2 billion won in the same period last year. DHI is undergoing a reorganization to divulge itself of money-losing operations, as are many of the large Korean industrial conglomerates. Current plans plans call for a split in the shipbuilding and construction equipment businesses into separate units, leaving the remaining company with nonoperating assets, including stakes in Daewoo Motor Co. The division is set for Sept. 1 after several delays. Sales totaled 2.08 trillion won, down from 3.11 trillion won in the same period in 1999, in part because a stronger won meant dollar-denominated ship sales converted into fewer won in the accounts.

Daewoo Fined For Intra-Group Trade

South Korea's Fair Trade Commission reportedly fined Daewoo Corp about $1.2 million last month for an unfair intra-group foreign currency transaction, in which Daewoo allegedly sold $192 million below market rates to Daewoo Heavy Industries through the local branches of two foreign banks. Daewoo Group, currently struggling under debts of $47.3 billion, was fined a total of $11.2 million, including the $1.2 million for the currency transaction.

Daewoo To Build ULCCs For Loews Unit

Daewoo Heavy Industries has agreed to build two 442,500 dwt, ULCCs for Majestic Shipping Corp., a subsidiary of Loews Corp. Majestic also has options with Daewoo to build two additional vessels. Another Loews subsidiary, Hellspont Shipping Corp., recently contracted for Samsung Heavy Industries to build three 303,000 ton VLCCs and agreed to an option to build one additional ship. Delivery of the new vessels from both Korean shipyards is scheduled to begin in the fourth quarter of 2001.

Daewoo Wins $90M Greek Ship Order

Daewoo Heavy Industries Co. Ltd. has reportedly won a $90 million order from Greece's Chandris Inc. to build four bulk carriers.

Bergesen Orders Ore Carrier From Daewoo

Bergesen d.y. Group ASA ordered a 175,000 dwt reinforced ore carrier from Daewoo Heavy Industries Ltd. for $42 million, with an option for an additional ship. Forty percent of the contract price will be paid during building and 60 percent on delivery on the vessel, which is scheduled for October 2001. Bergesen's fleet current includes six drybulk vessels between 173,000 and 365,000 dwt.

Daewoo To Split Into Three Units

South Korea's Daewoo Heavy Industries Co apparently plans to split into three units on October 23, pending an approval from its board of directors. It's unknown at present how the spin off will effect the world's second largest shipbuilder. The company planned to divide its shipbuilding and machinery operations and form a third company to manage its debts. The machinery and shipbuilding units are expected to list separately around December 20, pending approval from the Financial Supervisory Service.

Daewoo To Keep Shipbuilding Unit Management

Daewoo Heavy Industries Ltd. is reportedly looking to set up a shipbuilding joint venture but will not give up management of its shipbuilding division.

Won Depreciation To Raise Daewoo's Operating Profit by 43 Percent

The head of South Korea's Daewoo Shipbuilding said on Friday the won's depreciation would raise the company's operating profit by about 43 percent from its earlier target. "If the (dollar/won) exchange rate stabilizes above 1,300, our operating profit will rise to about 300 billion won ($222.7 million) this year against an earlier target of 210.7 billion won," a high-ranking Daewoo official said. Daewoo Shipbuilding & Marine Engineering Co., which was spun off from Daewoo Heavy Industries last October along with another unit, earlier made this year's forecast on the assumption the exchange rate would be around 1,200. The official was quick to add that graduation from creditors' workout program would be possible by end-June, six months ahead of the year-end target.

Maritime Reporter Magazine Cover Dec 2017 - The Great Ships of 2017

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