South Korea’s top three shipyards exceed annual order target

[Photo by Korea Shipbuilding & Offshore Engineering Co.]

South Korean shipbuilding majors have exceeded this year’s annual order target due to growing demand for container ships, in line with the resumption of global trade and the shipping of cleaner fuels.

According to shipbuilding industry sources on Thursday, Korea’s three major shipyards – Korea Shipbuilding & Offshore Engineering Co. (KSOE), Daewoo Shipbuilding & Marine Engineering Co. and Samsung Heavy Industries Co. – have passed or nearly hit the mark. their annual order targets.

This is the first time since 2013 that the country’s three shipyards have met all of their annual targets.

Korea Shipbuilding & Offshore Engineering, the holding company of Hyundai Heavy Industries Group, surpassed its annual target of $ 14.9 billion by 30% by securing orders worth $ 19.4 billion for the construction of 201 ships, including its major liquefied natural gas (LNG) carriers as well as value-added ships, including mega container ships, very large crude carriers (VLCCs), liquefied petroleum gas (LPG) carriers and petrochemical carriers.

Daewoo Shipbuilding & Marine Engineering recently won 1,000 billion won ($ 850.8 million) contracts to build four LNG carriers. With this addition, DSME recorded an order total of $ 8 billion for 46 vessels, also exceeding its annual target of $ 7.7 billion. This is the first time since 2014 that the shipbuilder has reached its annual order target. Its order book stands at $ 22.2 billion, which is equivalent to two years of production.

[Photo by Samsung Heavy Industries Co.]

[Photo by Samsung Heavy Industries Co.]

Samsung Heavy Industries landed a total of 7.8 billion orders, or 86% of its annual target of $ 9.1 billion. The company is expected to hit the target as early as next month as it is in final talks with Russian state-owned gas producer Novatek to sign an agreement worth more than $ 2.6 billion to build seven ships. -Icebreaker tanks, six ice-resistant LNG carriers. , including two options for the Arctic LNG2 project, Russia’s largest natural gas project.

Shipbuilders expect their order book to stretch further in the coming months, hoping to secure another windfall of LNG carrier orders from Qatar Petroleum. Qatar’s state-owned oil company signed niche LNG shipbuilding contracts for more than 100 vessels with the Korean trio in June last year.

Another advantage is the growing demand for environmentally friendly ships and the high value of ships. The Clarkson New Construction Price Index, which shows the price changes of newly built ships, stood at 147.5 as of September 10, up 16% in the first nine months of this year to a peak in 12 years.

Rising raw materials and prices for thick steel sheets can add more than 2,000 billion won to shipbuilders. Last month, steelmakers like Posco and Hyundai Steel raised the price of thick steel sheet from 300,000 to 400,000 won to 1.1 million won per tonne.

By Song Gwang-sup and Lee Soo-min

[ⓒ Pulse by Maeil Business News Korea &, All rights reserved]

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