South Korea Mulls LNG Bunkering Hub
A group of South Korean companies including shipbuilders have come together to establish an association dedicated to developing liquefied natural gas (LNG) bunkering facilities and infrastructures including LNG-fueled vessels, says a report in the Pulse. Last week, officials representing 21 private and state-run entities in Korea gathered to attend the inaugural meeting of the LNG Bunkering Industrial Association. They were from major shipbuilding and energy companies including Hyundai Heavy Industries Co., Daewoo Shipbuilding & Marine Engineering Co., Samsung Heavy Industries Co., Korea Gas Corporation, Posco Co., Samchully Corp., GS Energy Corp. and SK Energy Co.
Posco E&C Signs $112m Deal
Posco Engineering & Construction Co., a construction unit of 's leading steelmaker POSCO Co., said it had clinched a $112m preliminary deal to build an international container terminal in southern . The container terminal, expected to process 1.15m 20-ft. containers a year, will be built in Vung Tau, 125 kilometers south of , POSCO E&C said in a statement. The formal contract is scheduled to be signed in April, with the South Korean builder slated to break ground for the terminal in May with the aim of completing it by 2011, POSCO E&C said. Source: Business in Today
POSCO to Raise Steel Plate Prices
POSCO Co. Ltd., the world's fourth-largest steel maker, said it would raise the price of its steel plates for shipbuilding by 9.9 per cent, reflecting higher costs and strong demand, a Reuters report indicated. The South Korean steel maker will increase the price to $724.80 per tonne from $660, effective from October 25, the company said in a statement. Global prices of steel products, particularly for shipbuilding, have risen as shipbuilding yards have very strong order books in South Korea, China and Japan. Prices of raw materials such as iron ore, coal and scrap are also strong backed by brisk demand. POSCO, however, will maintain its prices of other key products, including hot-rolled and cold-rolled coil, in the fourth quarter. [Source: Reuters]
POSCO to Invest to Boost Steel Plate Output
Reuters said that POSCO Co. Ltd. said on Friday it would invest a total of $2b to boost output of steel plates for ships as the booming shipbuilding industry led to higher demand for the product. POSCO , the world's fourth-largest steel maker, said in a statement it would spend $1.96b to build a new domestic plant and related facility to produce steel plates. The plant, which will have a capacity of 2 million tonnes a year, will be completed by July 2010. With the new plant and planned upgrades to its existing facility, POSCO plans to raise its steel plate output to 7 million tonnes a year in 2011 from 3.8 million estimated for this year, the company said. The decision comes as surging demand for steel plates from shipbuilders and heavy industry companies keep prices firm.
KDB to Unveil Daewoo Sale Plan in 2007
Reuters reported that Korea Development Bank (KDB), a top shareholder in Daewoo Shipbuilding and Marine Engineering Co. Ltd. , will announce in early 2007 a plan to sell the world's No. 2 shipbuilder, the bank's governor said on Monday. State-run KDB and government restructuring agency KAMCO jointly own half of the shipbuilder, one of former units of the bankrupt Daewoo Group, with a market value of $5.7b. The sale is expected to be one of the biggest M&A deals in South Korea, with KDB Governor Kim Chang-lok predicting it would fetch about $6.2 -$7.3b. KDB has outsourced the assessment of the best ownership structure at Daewoo Shipbuilding and the proper time of the sale, and expects to have the outcome in November. Earlier this month, steel maker POSCO Co. Ltd.
Daewoo Shipbuilding Shares Surge on M&A Talk
South Korea's Daewoo Shipbuilding and Marine Engineering Co. shares rose as much as 6.7 percent on August 3 after a local newspaper said steel maker POSCO Co. Ltd. was interested in buying the shipbuilder. South Korea aims to sell a controlling stake in Daewoo, the world's second-biggest shipbuilder, in the second half of 2006. State-run Korea Development Bank and government restructuring agency KAMCO own a combined 50.6 percent stake, valued at more than $3b according to current market prices. POSCO, which is slated to become the world's number four steel maker once Mittal Steel's takeover of Arcelor is completed, has been facing falling margins due to weak steel prices in a market awash with Chinese supplies, Reuters reported. Daewoo had a $7.93m net profit on sales of $4.8b in 2005.
