Two South Korean shipbuilders -- Samsung Heavy Industries Co. and Daewoo Shipbuilding & Marine Engineering Co. -- are expected to win a combined $1.5 billion deal, industry sources said Wednesday.
According to industry tracker TradeWinds, the Mediterranean Shipping Co. is working on an order for up to 11 container vessels.
MSC is close to a deal with Samsung Heavy for up to six 22,000-TEU vessels and is expected to turn to Daewoo Shipbuilding for a further five, the report said.
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(Yonhap) |
The deals, if clinched, will help local shipyards struggling to win more shipbuilding deals.
Entering this year, local shipyards have bagged more new orders than expected but recently have suffered a setback in securing more contracts.
South Korean shipbuilders have been under severe financial strain since the 2008 global economic crisis, which sent new orders tumbling amid a glut of vessels and tougher competition from Chinese rivals.
The country's top three shipyards suffered a combined operating loss of 8.5 trillion won in 2015. The loss was due largely to increased costs stemming from a delay in the construction of offshore facilities and an industrywide slump, with Daewoo Shipbuilding alone posting a 5.5 trillion-won loss.
In 2016, Hyundai Heavy managed to post profits, but the other two suffered losses. (Yonhap)
