Korean Shipbuilding Sectors to Recover in 2011
2010 saw very stagnant business for shipbuilders worldwide including the three major shipbuilding companies in Korea.
2010 saw very stagnant business for shipbuilders worldwide including the three major shipbuilding companies in Korea- Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding and Marine Engineering.
But with the global economy on the rebound, orders for ships are back on the rise.
While the demand for transport ships, such as bulk carriers, is decreasing, market requirements for specialized ships with advanced engineering features, such as super-sized container ships or liquefied gas tankers, are increasing.
Han Jang-sup, Exec. Vice Chairman Korea Shipbuilding Association] "We expect a rising demand for ships with high fuel efficiency and green technology. In these advanced fields, Korea is ahead of others, causing us to expect many more orders down the road."
And experts anticipate investment in shipbuilding by financial institutions to return to pre-economic crisis levels, bringing along more contracts.
Sung Ki-jong, Lead Analyst
Daewoo Securities, Material & Heavy Industry Dept.] "The past two years saw very weak capital investment in the shipbuilding sector. But still, companies with financial resources purchased ships. And we expect more orders for 2011 with a recovery in the shipping business."
And for Korean shipbuilders, the need to widen the gap between them and their competitors in terms of advanced engineering capability is critical at this stage, with China right on Korea's tail, ready to overtake the global market share.