Japanese Shipyard Expected To Integrate
Three Japanese shipbuilders are expected by the end of the week to sign an agreement to integrate their operations, Reuters reported. According to the report, Kawasaki Heavy Industries Ltd., Ishikawajima-Harima Heavy Industries Co., (IHI) and Mitsui Engineering & Shipbuilding Co Ltd. are set to integrate operations in the general commercial vessel market. The combined annual revenue of the their ship businesses in fiscal 1999 totaled 308.5 billion yen, surpassing the 268.9 billion yen earned by leading Japanese shipbuilder, Mitsubishi Heavy Industries Ltd.
IHI Cuts 1,200 Jobs
Ishikawajima-Harima Heavy Industries Co. Ltd. (IHI) will cut its work force by 1,200 from the current 13,200 by the end of March 2001. A spokesman said the company plans reduce its 560 administrative staff by 30 percent, including those in finance and general affairs. The comprehensive heavy machinery manufacturer will focus on aerospace, environment protection equipment, logistics and other areas that have large potential for growth, he said.
Japanese Yards Form Alliance
Three major Japanese shipbuilders are forming an alliance on commercial vessels and ocean engineering to survive competition with South Korean shipyards. The three firms -- Ishikawajima-Harima Heavy Industries, Kawasaki Heavy Industries Ltd and Mitsui Engineering & Shipbuilding Co Ltd will cooperate on joint procurement of materials and design skills for building commercial vessels, aiming to cut production costs. They will decide in one or two years whether to spin off their divisions for commercial ships and ocean engineering to form a joint venture, a Kawasaki spokesman said. If they do so, the joint firm's sales are likely to rise to a level equal to that of Mitsubishi Heavy Industries Ltd, spokesmen for the three shipbuilders said. The alliance excludes military ships.
Japanese Shipbuilders Warned Over Bid Rigging
According to a report from the Kyodo News Service, eight shipbuilders were warned by the government's competition policy watchdog over alleged bid rigging on defense contracts. The Fair Trade Commission (FTC) said it issued the warning over what it deems were acts to unfairly restrict competition for contracts from the Maritime Self-Defense Force (MSDF) concerning the force's fleet between fiscal 1996 and fiscal 1999. The eight are Mitsubishi Heavy Industries Ltd., Ishikawajima-Harima Heavy Industries Co., Sumitomo Heavy Industries Ltd., Hakodate Dock Co., Mitsui Engineering & Shipbuilding Co., NKK Corp., Sasebo Heavy Industries Co. and Hitachi Zosen Corp.
Japan Shipbuilding Contracts Soar
Ship export contracts concluded by Japanese shipyards in December surged 148.2 percent from a year earlier to 1,657,340 grt or 29 vessels, the Japan Ship Exporters' Association said. Orders consisted of 15 oil tankers, 13 bulk carriers and one freighter, it said. The statistics cover orders received by association members for steel vessels of at least 500 grt. For the whole of calendar 2000, ship export contracts rose to 14,561,340 grt or 301 vessels, up 66.7 percent from the previous year, the association said. An official of the industry body attributed the sharp gains for December and for the year to an increase in oil demand, particularly from China, and firming freight rates in line with higher crude oil prices.
Aker Solutions Removes EPC-LNG From Backlog
The $665m EPC-LNG contract was awarded to the joint venture (50/50) between Aker Solutions (formerly Aker Kvaerner) and IHI, Inc. (formerly Ishikawajima-Harima Heavy Industries) and announced in a stock exchange release 19 July 2006, pending the issue of a Full Notice to Proceed from Ingleside Energy Corporation. Not having received such a Notice to Proceed effects Aker Solutions' backlog by USD 330 million. As a result, Aker Solutions has decided to remove the contract from its order backlog with effect from first quarter 2008.
Japanese Majors Confirm Merger Talk
Kawasaki Heavy Industries Ltd. said that it, Ishikawajima-Harima Heavy Industries (IHI) and Mitsui Engineering & Shipbuilding (MES) have started talks on a possible alliance in the shipbuilding business. "We have just started negotiations so we have not decided any concrete plans yet. We do not know yet what kind of alliance we can make," a Kawasaki spokesman said. It is reported that the firms will seek an initial alliance in orders, design and materials procurement, followed by spinning off their shipbuilding business and integration into a joint venture. The three companies have a cumulative shipbuilding business in the range of $3.5 billion.
Two Killed in Shipyard Accident
According to wire reports, two workers were killed and two others injured earlier this week after falling about 65 ft. to the ground when a 246-ton steel block fell over on a ship under construction in Kure, Hiroshima Prefecture. The four were working on the construction of a 90,000-ton containership for a German client at a shipbuilding dock of IHI Marine United Inc., launched in 2002 via the partial merger of Ishikawajima-Harima Heavy Industries Co. and Sumitomo Heavy Industries Ltd. The accident took place shortly after 9 a.m., when they were trying to fix the steel block to the ship. The block -- 15 meters in height, 16 meters in width and 2.5 meters thick -- fell over the port side of the ship, throwing the four to the ground.
Report: Korean Shipbuilders Dominate Global Orders
Reports indicate that South Korea's shipbuilders ranked No. 1 through No. 7 worldwide in terms of order backlogs for the first time ever as of the end of February, a London-based market researcher said Monday. Seven domestic shipyards' order backlogs accounted for 35 percent of the global industry's total of 107.34 million compensated gross tons (CGT), Clarkson Plc. said. Hyundai Heavy Industries ranked No. 1 worldwide with an order backlog of 10.82 million CGT, it said. Daewoo Shipbuilding & Marine Engineering and Samsung Heavy Industries Co. were the second and third largest with order backlogs of 7.82 million CGT and 7.44 million CGT, it said. Industry leader Hyundai Heavy's two subsidiaries _ Hyundai Mipo Dockyard Co.
Report: S. Korea lags China, Japan in Shipyards
According to reports, South Korea fell behind China and Japan in the number of shipyards ranking in the world's top 50 in terms of order backlogs as of the end of May, although seven South Korean companies were No 1 through No 7, a London-based market research firm said. Fifteen Japanese shipyards and the same number of Chinese companies were included in the world's top 50 list, while only nine South Korean shipyards made it, Clarkson Plc. said. South Korea boasts the world's top seven shipyards - Hyundai Heavy Industries Co, Samsung Heavy Industries Co, Daewoo Shipbuilding & Marine Engineering Co, Hyundai Mipo Dockyard Co, Hyundai Samho Heavy Industries Co., STX Shipbuilding Co and Hanjin Heavy Industries & Construction Co.
Japanese Shipbuilding Consolidation Is Imminent
Kawasaki Heavy Industries is said to be considering integrating its shipbuilding business with those of Ishikawajima-Harima Heavy Industries Co. (IHI) and Mitsui Engineering & Shipbuilding Co. A spokesman for Kawasaki Heavy, Japan's second-largest heavy machinery and shipbuilding firm, said it sees such consolidation as one option but no accord has been reached. Business daily Nihon Keizai Shimbun reported on Wednesday that IHI and Kawasaki Heavy had reached a basic agreement to merge their shipbuilding businesses in an equally owned joint venture in October 2002. Third-ranked IHI said separately in a statement on Wednesday that it is considering consolidating its shipbuilding business with Kawasaki Heavy but they have not reached final agreement.
IHI Cuts 1,200 Jobs
Ishikawajima-Harima Heavy Industries Co. Ltd. (IHI) will cut its work force by 1,200 from the current 13,200 by the end of March 2001. A spokesman said the company plans reduce its 560 administrative staff by 30 percent, including those in finance and general affairs. The comprehensive heavy machinery manufacturer will focus on aerospace, environment protection equipment, logistics and other areas which have large potential for growth, he said. In August, IHI lowered its group net forecast for 1999/2000 to a loss of seven billion yen from a profit of five billion yen. The downward revision was due mainly to losses from its plant engineering business overseas as well as the yen's strengthening.
Unithai Shipyard Has Four Vessels Under Repair
Thailand’s Unithai Shipyard & Engineering currently has four vessels undergoing repair - Technomar Shipping’s 33,185 dwt containership Kota Perwira, Ahrenkiel Shipmanagement’s 26,140 dwt bulk carrier Caria, the Almog, a general cargo vessel owned by Dynamic Shipping Services, and the Spar Cetus, a 45,146 dwt bulk carrier from Fleet Management. Unithai Shipyard has another four vessels scheduled to arrive throughout this month (May) - the Stolt Alliance, a 12,674 dwt chemical tanker from Stolt Nielsen, Osaka Asahi Kaiun’s 16,563 dwt containership Singapore Bridge, the Sutra Dua, an 8,073 dwt chemical tanker from Sutrajaya Shipping, and Bunga Orkid Empat, a 43,246 dwt bulk carrier from Malaysia’s MISC.
Mitsui O.S.K. Orders Five Containerships
Japan's Mitsui O.S.K. Lines Ltd. (MOL) has ordered three 6,000-TEU containerships from Ishikawajima-Harima Heavy Industries Co. (IHI). Both companies declined to comment on the contract terms, but industry sources estimate a such vessel would cost over five billion yen. MOL also placed an order for two 6,000-TEU container ships with unlisted Japanese shipbuilder Imabari Shipbuilding Co Ltd, it said in a statement. The five new vessels with a service speed of 25.5 knots, to be deployed in the company's trans-Pacific services, will replace its current 2,800 TEU vessels in 2002.
Aker Kvaerner Partnership Wins LNG Contract
Aker Kvaerner in joint venture (50/50) with Ishikawajima-Harima Heavy Industries (IHI) was awarded a contract for the engineering, procurement and construction of the Ingleside Energy Center regasification terminal in Ingleside, Texas, USA. The contract value to the Aker Kvaerner and IHI joint venture is $665m. The project is expected to take approximately three years to complete, after Ingleside Energy Center elects to issue a Notice to Proceed. Construction is scheduled to begin the first quarter of 2007. The Ingleside Energy Center LNG terminal will be the second large LNG regasification project to combine Aker Kvaerner's expertise…
Aker Kvaerner, IHI Partnership Wins LNG Contract
Aker Kvaerner in joint venture (50/50) with Ishikawajima-Harima Heavy Industries (IHI) was awarded a contract for the engineering, procurement and construction of the Ingleside Energy Center regasification terminal in Ingleside, Texas. The contract value to the Aker Kvaerner and IHI joint venture is $665m. The project is expected to take approximately three years to complete, after Ingleside Energy Center elects to issue a Notice to Proceed. Construction is scheduled to begin the first quarter of 2007. The Ingleside Energy Center LNG terminal will be the second large LNG regasification project for the partnership. The design and engineering will be directed from Houston involving approximately 125 personnel from Aker Kvaerner and IHI.
IHI Completes MOL Performance
Ishikawajima-Harima Heavy Industries Co., Ltd. (IHI) has completed construction of the overPanamax container carrier, MOL Performance, for Mitsui O.S.K. Lines Ltd. (MOL) of Japan at the IHI Kure Shipyard. The carrier is the first of three MOL sister ships capable of carrying containers of 6,400TEUs at a high speed of 27.8 knots. IHI pioneered construction of the over Panamax container carrier with a beam of over 32.2m and has constructed 11 over Panamax container carriers including the MOL Performance. IHI will build 13 large container carriers at its Kure and Yokohama Shipyards. The MOL Performance has entered service between the Far East and Europe.
Excel Maritime Agrees to Acquire MV Fiona Bulker
Excel Maritime Carriers Ltd a shipping company specializing in the seaborne transportation of dry bulk cargoes such as iron ore, coal and grains, announced that it agreed in late February 2005 to acquire a Handymax bulk carrier, MV Fiona Bulker, for a purchase price of $25.6 million. MV Fiona Bulker (to be renamed "MV Princess I") is a Handymax bulk carrier of approximately 38,800 dwt, built in 1994 by Ishikawajima-Harima Heavy Industries. The vessel is expected to be delivered by late May 2005. MV Fiona Bulker is the ninth vessel that the Company has agreed to acquire since Christopher Georgakis joined Excel Maritime as CEO in late October 2004.
Japanese Builders to Develop New Materials
A group of Japanese firms, including Ishikawajima-Harima Heavy Industries Co., have signed a deal with the Defense Agency to develop new materials for building ships, part of a Japan-U.S. agreement to conduct research in this field together, according to a report on www.tmcnet.com. By switching from the usual steel to new materials, the firms hope to make ships lighter and more durable, the report said. A potential new material, carbon fiber, is 10 times as strong as steel and 80 percent lighter in weight. Another material, stainless steel, is more rust-resistant than steel and does not break as easily. Their use is expected to make ships stronger because vessels in major accidents often snap in the middle and sink, according to the report. (Source: www.tmcnet.com)
Japanese Shipbuilding Giants Cut Their Losses
Japan's Kawasaki Heavy Industries Ltd. and Ishikawajima-Harima Heavy Industries Co. Ltd (IHI) said on Tuesday they would integrate their loss-making shipbuilding divisions in October 2002. News of the alliance was welcomed by investors, who sent shares in Kawasaki Heavy up five percent to 168 yen while IHI closed at 272 yen, gaining 7.5 percent. The alliance of Japan's second- and third-biggest heavy machinery and ship makers, intended to bring them back to profitability, reflects growing competition from Korean shipbuilders able to take advantage of low manufacturing costs and a weak won. The two companies will form a 50-50 joint venture based in Tokyo and will make joint use of Kawasaki's plants in Kobe and Sakaide and IHI's plants in Yokohama and Kure, they said.
Hyundai Heavy Sets 2018 Sales Target $7.5 billion
South Korea's leading shipbuilder Hyundai Heavy Industries (HHI) aims to achieve 7.98 trillion won ($7.5 billion) in sales this year as its president warned of an unprecedented crisis due to declining order backlogs, reports Yonhap. Hyundai Heavy has not won any offshore plant orders for the past two years. The company's 2018 sales target represents a 60 percent decline from a decade ago. The shipyard said it is expected to post an estimated 10.03 trillion won in sales for 2017. The sales target is based on a parent base.
Bahri Dry Bulk Secures Newbuild Finance
Bahri Dry Bulk, a business unit of global transportation and logistics leader Bahri, has announced that it has secured a Sharia-compliant funding of SAR 360 million (USD 96mln) from Bank Albilad, one of the fast-growing banks in Saudi Arabia. The fund is to finance the purchase of four new bulk carriers as part of an agreement signed by the company in 2017 with Hyundai Mipo Dockyard (HMD), a member of Hyundai Heavy Industries (HHI) Group, the world’s largest shipbuilding company based in South Korea.
HHI Group to List Oilbank
IPO seen improving group's financial soundness, transparency; Group sees shipbuilding recovery starting 2019. South Korea's Hyundai Heavy Industries Group plans to list its refining arm Hyundai Oilbank in an IPO in 2018 and raise about $1.2 billion via a share issue by shipbuilder Hyundai Heavy Industries, in a move to bolster its finances. Hyundai Heavy Industries, the flagship company of South Korea's ninth-largest conglomerate, said on Tuesday that Hyundai Robotics, the group's holding company…