NEWS / January 7, 2009

Highest production amid slump

South Korean large shipbuilders are expected to deliver over 500 ships this year, the highest figure ever. According to Korea Shipbuilders’ Association (Koshipa), its nine member companies, which are major shipbuilders, have completed over 400 newbuildings last year and they would turn over more than 500 ships to shipowners for the first time in 2009.

The nine shipbuilders’ output accounts for 90% of the total ship production in Korea and they handed over a total of 407 vessels in 2008, up around 20% from 340 units in 2007. Last year, Hyundai Heavy Industries (HHI) delivered over 100 vessels for the first time. Other major shipbuilders such as Samsung Heavy Industries (SHI), Daewoo Shipbuilding & Marine Engineering (DSME), STX Shipbuilding and Hanjin Heavy Industries & Construction (HHIC), etc also have expanded their output. In 2009, the output growth rate is expected to increase with the nine shipbuilders planning to hand over 522 newbuildings, up around 30% against 2008. Newbuilding order boom since 2004 and shipbuilders’ expansion of building capacity contributed to the increase in shipbuilding output. As for HHI, its FPSO-exclusive dock is set to be completed within this month and its new yard Gunsan Shipyard is scheduled to launch the first ship in November this year. Also, SHI’s No. 3 floating dock starts operation this month and DSME has completed the expansion of its No. 2 dock in November last year. In 2009, HHI plans to deliver 119 ships (102 in 2008), SHI 63 ships (53 in 2008), DSME 75 ships (55 in 2008), HHIC 35 ships (20 in 2008). Hyundai Samho Heavy Industries aims to hand over 40 ships this year (35 in 2008) and Hyundai Mipo Dockyard 72 ships (70 in 2008).





Hyundai completes 102 vessels

World Top spot Hyundai Heavy Industries (HHI) announced that its newbuilding completions in 2008 reached a total of 102 units, up 22 ships from 2007. The record is a world first for any major shipyard. Since 1974, HHI has completed a total of 1,505 ships for 237 shipowners in 44 countries across the world. Cumulative totals for completion volume were 100 ships as of 1979, 200 as of 1983, 500 as of 1992 and 1,000 as of 2003. HHI expects to complete 119 ships in 2009. With HHI receiving no orders in both October and November, the company's total orders received for January-November 2008 stood at 110 ships aggregating 10.01 million grt and $13.6 billion in value, unchanged from the earlier reported performance for January-September 2008. The 110 ships consist of 37 tankers, 35 containerships, eight LPG carriers, 23 bulkers, two drillships, one special ship and four others. In its total order book, HHI now has a total of 362 ships of 31.3 million grt valued at $34.8 billion. The 362 ships consist of 114 tankers, 155 containerships, four LNG carriers, 30 LPG carriers, 38 bulkers, three drillships, 10 special ships and eight others.