Marine Link
Saturday, July 22, 2017

S. Korea's Top Three Shipyards Look Bullish

File photo: Hyundai Heavy Industries

With a slew of contracts to be signed soon  South Korean shipyards are expected to clinch a decent number of new orders during the second half of the year, Yonhap reported quoting  industry sources. Hyundai Heavy Industries (HHI) and its affiliates have secured a series of fresh contracts, with their new orders reaching US$4.2 billion for 72 ships in the first six months of the year. In the January-June period, Samsung Heavy Industries (SHI) won $4.8 billion worth of orders to build 13 ships, including two offshore plants.

Korean Shipyards Look Bullish

Photo: Hyundai Shipbuilding Division

South Korea's major shipyards are estimated to have racked up solid profit during the second quarter of the year, aided by the increased delivery of ships, cost-cutting measures and a rise in new orders, Yonhap reported citing industry sources. Another report said that Korean yards have clinched the most new shipbuilding orders in the first half of the year, with their combined tally more than doubling from a year earlier. The trend appears bullish for ship building in the country.

Samsung Heavy to Cut Its Workforce

File Photo: Samsung Heavy Industries

South Korea’s shipbuilder Samsung Heavy Industries (SHI) is looking to further cut its workforce,  and have employees return part of their salaries in order to cut costs, according to Yonhap News Agency. SHI unveiled a self-restructuring program that centers on cutting the workforce and having executives return part of their salaries last year, in order to tide over a protracted slump in the shipbuilding sector. The report said that Samsung Heavy was forced to reduce its workforce by 1,500 in 2016 through an early retirement scheme.

Ailing Korean Shipbuilders to Get Huge Cash Injection

Creditors are expected to inject 800-billion Won (US$ 730-million) into STX Group during 2013, according to Yonhap News Agency. Creditors of STX Group will likely pump at least 800 billion won (US$730 million) into the troubled shipbuilding conglomerate in a bid to keep it afloat, an unnamed source has informed Yonhap News Agency.  STX Group's troubled holding company, STX Corp., and two affiliates requested main creditor Korea Development Bank to supply liquidity in return for its voluntary debt-relief and restructuring efforts. Source: Yonhap News Agency  

OSX Korea Shipyard to Build 5 Peru Navy Patrol Boats

Image courtesy STX

STX Offshore & Shipbuilding Co. has signed a deal with the defense ministry of Peru to build five patrol ships for 75 billion won (US$71.3 million) reports Yonhap News. Citing the shipbuilders, Yonhap adds that STX will deliver the ships by the end of 2015, and that in March 2012, the company signed a first contract for building the same type of ships with Colombia's defense ministry. Source: Yonhap News  

Korea Warship Order Helps DSME Best 2013 Target

Daewoo Shipbuilding & Marine Engineering (DSME) has clinched a 322.6 billion won (US$305.8 million) deal to build a frigate that will help it exceed its 2013 order target of $13 billion, reports Yonhap News Agency. Citing DSME, Yonhap informs that the contract with the Defense Acquisition Program Administration entails building and delivering the warship to the South Korean Navy by 2017. The latest contract leaves Daewoo Shipbuilding with cumulative orders of 57 ships and offshore plants worth $13.6 billion for this year. Source: Yonhap News Agency

South Korea Order Second Navy Landing Ship

South Korea's defense procurement agency has signed a contract with Hyundai Heavy Industries to acquire a new next-generation landing ship LST-II, reports Yonhap New Agency. This vessel will be South Korea's second LST-II ship designed to land personnel, tanks and equipment simultaneously, after the first one that has been under construction by Hanjin Heavy Industries since 2011. The new contract is worth 136.4 billion won (US$129 million), and delivery is set for 2016, says Yonhap, citing the Defense Acquisition Program Administration. Source: Yonhap News Agency  

Korea Shipbuilder Wins US$400-M Greek Order

Contract: File image

Daewoo Shipbuilding & Marine Engineering Co., South Korea’s second-largest shipbuilder, says it has signed a contract to build 4 tankships for Maran Tankers Management, a unit of Greece’s largest shipper Angelicoussis Group, according to Yonhap News. Daewoo Shipbuilding plans to deliver the tankers by 2016, the company informed Yonhap in an e-mailed statement. The two companies have also signed a separate contract with an option to change the tankers' bunker-C oil-fuelled engines to LNG supply.

DSME Bags 4 VLCCs Order from Angelicoussis

Photo: Daewoo Shipbuilding & Marine Engineering

South Korea’s Daewoo Shipbuilding & Marine Engineering (DSME) won its second order from Maran Tankers Management (MTM), a subsidiary of  Greek shipping giant Angelicoussis Shipping Group,  to build four very large crude carriers (VLCCs). Yonhap quoted a regulatory filing of Daewoo saying that it will deliver the 318,000-ton vessels by Aug. 20, 2019. The vessels, 336 meters long and 60 meters wide, will be powered by eco-friendly and fuel-efficient engines, the shipyard said. Daewoo did not reveal the value of the latest deal.

Offshore Shipbuilding Demand Prompts HHI Design Expansion

Hyundai Heavy Industries plans to establish a new ship design subsidiary early next year by expanding its Mipo Engineering Co, reports Yonhap News Agency. Hyundai Heavy Industries plans to establish a new ship design subsidiary early next year by expanding its Mipo Engineering Co, reports Yonhap. Growing demands for high-end ships such as drill ships and offshore plants prodded Hyundai Heavy to set up the new company, the shipbuilder informed Yonhap. Mipo Engineering will be incorporated into Hyundai E&T, which will be financed by Hyundai Heavy Industries, Hyundai Mipo Dockyard Co. and Hyundai Samho Heavy Industries Co. Hyundai Heavy plans to increase the number of ship designers to 1,600 by 2018 from the current 350, and the number of employees in the ship inspection sector to about 400.

S. Korea Invests to Increase Share in Offshore Plant Market

Geoje Shipyard: Image courtesy of SHI

South Korea plans to develop the offshore plant industry into a new engine for growth that will create over 10,000 new jobs by 2017, reports Yonhap News citing a government source. The government plans to effectively implement its policy initiatives by jointly investing some 900 billion won ($848 million) with the private sector by 2017. The move comes as the global market for offshore plants is expected to grow by an average 6.4 percent per year from US$145.2 billion in 2010 to $230.3 billion in 2015 and to $503.9 billion in 2030…

South Korean Navy to Build Nine 3,000-ton Subs by 2030

The South Korean Navy plans to build nine 3,000-ton submarines by 2030 to increase the length of its underwater operations and improve its precision strike capabilities, Yonhap News reported. Yonhap said it received the information from an anonymous military source who said the submarines were scheduled to be built between 2020 and 2030. Precise designs were allegedly started earlier this year. The new diesel-powered submarines will be equipped with vertical launchers that will dramatically improve the long-range precision strike capabilities of the Navy's submarine-to-surface missiles, according to the source. They are also expected to operate underwater for much longer than their smaller 1,800-ton and 1,200-ton counterparts.

Korea's STX Offshore Debt to Equity Swap Hastened

STX Offshore & Shipbuilding Co. will issue new shares worth 38.4 billion won (US$36.5 million) as part of its debt-to-equity swap scheme. The shipbuilder will float 15.37 million shares, which will be listed on the main Seoul bourse on Jan. 9, 2014, reports Yonhap News Agency. Yonhap cite Jeong Yu-mi, a spokesperson for STX Offshore & Shipbuilding, as informing that trhe new share issuance is part of the 700 billion won debt-to-equity swap program aimed at stabilizing the company, which since the end of July, 2013, has been under a voluntary debt-relief and rescheduling program. Creditors, including the state-run Korea Development Bank (KDB), were to provide 2.7 trillion won, of which 650 billion won would be offered next year, to help the shipbuilder get back on its feet.

Car Carrier on Sea Trials Collides with Tankship, Fire Ensues

Pure Car Carrier: Courtesy of Ray Shipping

The 55,000 gt car carrier 'Gravity Highway', which was under construction in Hyundai Mipo Shipyard, collided with chemical tanker 'Maritime Maisie' while on sea trials some 9 nautical miles off Busan, reports Yonhap News Agency. The impact caused a fire on the tanker, which was in danger of sinking, and some of the 27 crew members sustained light burns or abrasions, but none serious, officials informed Yonhap. Sixteen coast guard boats, some Navy vessels and helicopters were sent to the scene, and rescued all crew members aboard the tanker, officials said.

China Arbitration Court Orders Korea's STX to Pay Debt

STX logo

Troubled South Korea shipbuilder STX Heavy Industries Co. issued a guarantee on a loan defaulted on by its Chinese heavy machinery manufacturer, STX Dalian Heavy Industries Co., from China's Bank of Communications and has been ordered to repay the loan, reports Yonhap. Unlisted STX Dalian Heavy Industries is a wholly owned subsidiary of STX Heavy Industries and has been ordered to repay the 60.9 billion won (US$56.8 million) loan by the China International Economic and Trade Arbitration Commission after the Chinese unit failed to service the principle and interest.

Korea Shipbuilder's 2013 Profit Falls 86%

Image courtesy of HHI

According to the Yonhap News Agency Hyundai Heavy Industries Co., the world's largest shipbuilder informed Thursday that its net profit tumbled 86 percent last year from a year ago due to a fall in ship prices. Net income came to 146.3 billion won (US$136 million) last year compared with 1.03 trillion won a year ago, report Yonhap, citing a HHI regulatory filing. Hyundai Shipbuilding Division, claims to be the world's number one shipbuilder, leading the global shipbuilding industry with a 15% share of the market.

STX Offshore & Shipbuilding to Get Increased Bale-Out

Shipyard photo credit STX

Creditors have decided to provide additional liquidity to the shipbuilding unit of ailing STX Group in a move to help it overcome a cash crunch, reports Yonhap News Agency. Citing officials at the main creditors, Korea Development Bank, Yonhap say that more than 75 percent of other creditors approved the rescue measures including 1.8 trillion won (US$1.69 billion) in liquidity supply for STX Offshore & Shipbuilding. The rescue measures also include a debt-to-equity swap worth around 1.3 trillion won.

S. Korean Shipbuilders Top the Table in July

Shipyard scene: File photo

South Korean shipbuilders have shown signs of picking up after overtaking their Chinese rivals to regain the top spot last month, according to Yonhap News Agency. However, the sum of new orders in the January-July period lags well behind China rivals. The number of new orders for local shipyards jumped 3.6 times on-month to 33 ships totaling 1.4 million compensated gross tons (CGTs) in July, reclaiming their No. 1 position after five months, according to Yonhap, citing data by global market researcher Clarkson Research Services.

S. Korea Ship Counter-piracy Measures Introduced

A law revision requires South Korean ships to build safe areas (citadels) against pirate attacks. The recently passed revision, passed in the National Assembly on Nov. 22, 2012, obliges the construction of a so-called "citadel" inside ships that have to sail through international waters reports the Yonhap News Agency. When the revision will go into effect is not yet known, but it is expected to come into force soon. Previously there had been no related laws requiring owners to provide such safe areas, crew members have been left vulnerable to pirate attacks. There have been a total of nine cases where South Korean sailors were kidnapped in waters off Somalia since 2006. Six of the cases involved Korean ships, while two were Japanese and one was Singaporean.

DSME Ordered to Halt Production After 2nd Fire

South Korean shipbuilder Daewoo Shipbuilding & Marine Engineering Co. (DSME) has received orders from government officials to cease production on five of its ships presently under construction, following a series of deadly shipyard incidents, Yonhap reported. The government orders are in response to a fire which broke out Tuesday inside a gas tanker being built in a shipyard on Geoje Island, killing one worker and injuring at least seven others. The accident follows a similar incident that killed two and injured seven at Okpo Shipyard in August. Korea’s Ministry of Employment and Labor ordered the shipbuilder to stop construction until safety can be guaranteed aboard the ship that caught on fire Tuesday as well as four others of the same kind, Yonhap reported.

HHI Receives $650 mln Order from Iran for 10 ships

Photo courtesy Jelle van der Wolf, Adobe Stock

South Korean shipbuilder Hyundai Heavy Industries Co Ltd received a $650 million order to build 10 ships for Iran's state-owned shipping company, South Korea's Yonhap News Agency reported on Saturday, citing a Hyundai Heavy spokesman. The company will build container ships and tankers for Islamic Republic of Iran Shipping Lines, with delivery starting in 2018, Yonhap cited the spokesman as saying. The number of each type of ship was not disclosed. The deal was signed on Friday and was the first shipbuilding order by the Iranian firm since the lifting of international sanctions, Yonhap said.

No Bidders for Korean Bulkship Owners STX

The sale of STX Pan Ocean Co. fell through as the Easter financial markets closed. No potential bidders expressed their interest in South Korea's leading bulk carrier, raising the possibility that the shipping line may be taken over by a state-run policy lender, reports Yonhap News Agency. According to industry sources, no potential bidders have submitted letters of intent for STX Pan Ocean yet. Source: Yonhap News Agency

Korea's STX Offshore Gets Emergency Loans

Creditors of the ailing shipbuilder agree to provide STX Offshore with (US$540 million) in emergency loans. The news is cited as coming from the main creditor bank and is reported by the Yonhap News Agency. STX Offshore, the shipbuilding unit of STX Group, a South Korean shipping and shipbuilding conglomerate, has been suffering a credit crunch as demand for new ships has fallen sharply in the past few years. Source: Yonhap News Agency  

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