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ruben.maritime

The first web2.0 spanish blog about Maritime Affairs. El primer blog web2.0 español sobre el sector marítimo.

Korean yards brace for slowdown

SEOUL 03 January – South Korean shipbuilders including the world’s biggest builder, Hyundai Heavy Industries, are bracing for a slowdown in newbuilding orders this year. Massive orders secured in 2006 (about 20M CGT) could act as a break for orders in 2007, HHI chief executive KS Choi warned in his New Year speech. Choi also cited currency appreciation against the dollar, volatile steel and oil prices and a possible increase in labour costs as negative factors for the shipbuilding business. Samsung Heavy Industries CEO JW Kim agreed, expressing concern that the price of thick plate steel would be hiked. Daewoo Shipbuilding CEO ST Nam expects further erosion of the dollar and prices of raw materials to rise further. Yards are expected to enhance productivity and increase automation in areas such as welding, shipbuilding sources told Fairplay. Alternatives to oil such as bio-fuel could also be considered. Meanwhile, Hyundai affiliate Samho shipyard has targeted 45 newbuilding orders valued at $4.6Bn for 2007. The yard, which will soon begin to build ships “on-ground”, aims to deliver 28 ships valued at W2.6Trn ($2.8Bn) this year.

 

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