Dim Q3 Forecast for Korean Shipyards
South Korea's major shipyards are projected to report weaker-than-expected earnings for the third quarter of the year, due to increased costs and the construction of low-priced ships amid decreased new orders. Yonhap News Agency, quoting data compiled by Yonhap Infomax, said that Hyundai Heavy Industries (HHI) is expected to log an operating income of 106 billion won (US$93.6 million) during the July-September period, compared with the previous year's operating earnings of 322 billion won.
South Korea to Build World's Largest LNG-Fueled Ship
In an effort to go green amid looming strict emission rules, South Korea will launch a pilot program to build the world's largest vessel powered by liquefied natural gas (LNG), reports Yonhap. South Korean Ministry of Oceans and Fisheries said it will join forces with local shipyards, builders and state institutes to develop a class of 180,000-ton LNG-propelled vessels. The government launched a task force in January made up of local companies to develop the emerging marine transport sector to comply with the International Maritime Organization's sulfur cap on bunkers…
Ailing Korean Shipbuilders to Get Huge Cash Injection
Creditors are expected to inject 800-billion Won (US$ 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
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
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.
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
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 Returns to First Place in Shipbuilding
South Korean shipbuilding industry has surpassed China in three months and reached the top of global monthly shipbuilding orders. A report in Yonhap said that South Korean shipyards recaptured the No. 1 position in new orders worldwide in August amid a plunge in overall numbers. The local shipbuilders clinched new orders worth a combined 130,000 compensated gross tons (CGTs) last month to build nine vessels, the report said quoting data compiled by global research firm Clarkson Research Institute. Chinese rivals came next with 110,000 CGTs, or seven ships.
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
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
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%
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
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
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
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
China's Shipbuilders Suffer Fall in New Orders
According to a report from Yonhap, orders won by Chinese shipbuilders dropped more than 6 percent in the first seven months of this year due mainly to prolonged uncertainties in the global economy, the China Association of the National Shipbuilding Industry said. Source: Yonhap