Samsung Shipyard Mulls Outsourcing

Maritime Activity Reports, Inc.

August 20, 2016

Photo: Samsung Heavy Industries

Photo: Samsung Heavy Industries

 Samsung Heavy Industries (SHI) CEO Park Dae-young proposed the outsourcing of shipbuilding to China and Indonesia in an effort to overcome a liquidity crisis, according to Yonhap.

"I feel a doubt over whether we should build ships only in our shipyard," Park told a shareholders meeting which has been convened to discuss the shipyard's rights offering.
Park also said the company could outsource the shipbuilding process to smaller Korean shipyard.
SHI will also pursue new revenue streams as it fixes its restructuring.  The company may offer project management and operating and maintenance services. Park said that such services are being considered as new business opportunities. 
In a report in Korea Herald, Park said that  there were many requests for operating and maintenance services from shipowners, but a large part (of operating and maintenance services) is going to Singapore. 
“If we, who know the most about a ship, offer (operating and maintenance services) it would be a big help to us and the shipowners.”
Park ruled out the possibility that Samsung Heavy may stop building ships altogether, and that project management services will be offered for types of vessels the company does not offer.
The shipbuilding arm of South Korea's largest conglomerate, Samsung Group, has revealed a painful self-rehabilitation package worth 1.4 trillion won (1.26 billion US dollars), which was were approved by creditors at the start of June. It also plans to increase capital by issuing new shares to other group units which hold a combined 24.08 percent stake in Samsung Heavy.
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