South Korea’s three biggest shipbuilders are struggling to achieve their order targets for this year, as these were announced in early January 2018.
- The world’s largest shipbuilder, Hyundai Heavy Industries (HHI) -along with its two sister companies, Hyundai Mipo Dockyard and Hyundai Samho Heavy Industries- has received US$5.6 billion worth of orders in 2018 so far, which represents a 38% of its 2018 target.
- Samsung Heavy Industries (SHI) has won new orders totaling US$2.3 billion, which amounted to 28% of its annual order target.
- Daewoo Shipbuilding & Marine Engineering (DSME) posted US$3.2 billion in new order receipts as of June 26, attaining 44% of its annual target of US$7.3 billion.
In particular, HHI has secured orders for 33 oil tankers, 19 container ships, 15 gas tankers and two others so far, according to Business Korea. The orders do not include any LNG carrier, which is the most expensive type of vessel.
SHI has received orders for five LNG tankers, eight container ships and 11 oil tankers.
DSME has booked orders for 26 ships, including 10 LNG tankers.
This follows a downward trend for South Korean shipbuilding in recent years, as a result from global economic downturn and Chinese competition, which has led to oversupply and idle workforce in the domestic industry. Specifically Hyundai Heavy has lost out to Chinese and Singaporean rivals in offshore projects in recent years due to higher costs, Yonhap reported.
However, DSME seems to lead its two rivals in terms of quality and the ratio of the orders received to the annual goal, Business Korea reports.
The gap is expected to widen further, when Hyundai Merchant Marine (HMM) sign contracts for seven 23,000-TEU vessels with DSME and five with Samsung Heavy Industries. HMM selected Hyundai Heavy Industries for eight 14,000 TEU container ships.
