Korean shipyards hit by decline in new orders

Korean shipyards hit by decline in new orders


From news reports

Concerns are rising in Korea‘s shipbuilding industry as the nation’s major shipbuilders have failed to win new orders in the first quarter of this year, industry watchers said Wednesday.
The lackluster performance is showing how severe the industry is suffering from the protracted slump in the global shipbuilding sector, they said.
Global shipbuilding giants -- Hyundai Heavy Industries, Daewoo Shipbuilding & Marine Engineering and Samsung Heavy Industries -- received few orders during the January-March period.
Only Hyundai Heavy Industries, the world’s top shipbuilder, clinched a 150 billion won ($129 million) deal to build two petrochemicals tanker ships this month.
Lower oil prices have been causing a drop in demand for new ships and offshore facilities, while Chinese rivals have picked up a large slice of orders for smaller ships, in particular.
Major Korean shipbuilders have been pushing for restructuring since last year to get over the unfavorable business conditions caused by falling demand and ship prices in line with the slowing world economy.
Due to the protracted industrywide slump, local shipyards have trimmed their order targets for the year by 20 percent.
The three are expecting to win some $37 billion worth of new orders this year, down from last year’s $47 billion, according to the sources.