STX Targets $3b Sales in 2012 at Chinese Shipyard

South Korea's STX Shipbuilding Co., said that its shipyard to be built will post $3b in sales in 2012, similar to that of its shipyard in Jinhae, South Korea. During a ground-breaking ceremony for the shipyard, Kang Duck-soo, chairman of STX Group, said its $500 million project to build the first South Korean-owned shipyard in China by the end of 2008 will help the company emerge as a global shipbuilder. STX Shipbuilding and its affiliate, STX Corp., will build the yard that constructs bulk carriers and smaller-sized chemical vessels.

So far, the shipbuilder has won $1.1 billion worth of deals to build bulk carriers and other ships here. Separately, STX Shipbuilding and its affiliate, STX Heavy Industries Co., plans to spend another $500 million to build a plant here that produces 250,000 tons of ship structures. The shipbuilder swung to a profit of 41.2 billion won last year from a loss of 6.1 billion won the previous year. Sales increased 43 percent to 1.64 trillion won.

STX Shipbuilding also aims to receive $4.5 billion worth of new orders this year, or 13 percent more than in 2006. South Korean shipyards are going abroad to lower costs and increase capacity, in order to meet rising demand for vessels. South Korean shipyards are expected to see their exports rise 18 percent to $26 billion this year on the back of continuous demand for high-end ships and other products.