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China Eases up on THAAD Boycott of Korea

China appears to be easing up on a wide-ranging unofficial boycott of Korean goods and service over the stationing of a Terminal High-Altitude Area Defense battery from the U.S. here. The state-run People’s Daily, a bellwether of official opinion, repeatedly referred to Korea as a “close neighbor” recently after a telephone call between President Moon Jae-in, who is skeptical about the deployment, and his Chinese counterpart Xi Jinping on May 11. This was closely followed by the dispatch of a special envoy to Beijing, former prime minister Lee Hae-chan, last week. Korean businesses are resuming marketing in China that ground to a screeching halt amid the THAAD spat, and there are signs of sales recovering. Chinese travel agencies expect Beijing to lift a ban on cut-price ...

13 Out of 20 Ships Ordered by Korean Shipping Firms Built in China

Korea’s shipping companies ordered a total of 20 ships so far this year, Among them, 13 would be built by Chinese shipyards. The share of domestic construction in the newbuilding orders placed by local shipowners stood merely at 35 percent, far lower than China’s 100 percent and Japan’s 67 percent.   Against this backdrop, there are voices that call for the benchmarking of the win-win strategies pursued by China and Japan which are breaking through the slump of the global shipping and shipbuilding market through close collaboration between local shippers, shipyards, and shipping companies.   According to Britain’s shipping and shipbuilding analysis firm Clarkson on May 21, Korean shipping companies ordered a total of 20 ships during the period from January...

Korean Shipping Companies Supplied with More and More Ships from China

It has been found that South Korean shipping companies placed orders for a total of 20 new ships and South Korean shipbuilders obtained only 35% of them between January 1 and May 15 this year while the rest went to Chinese shipbuilders. On the contrary, Chinese shipping companies placed 16 orders during the period and all of the contracts were signed with Chinese shipbuilders. Japanese shipbuilders clinched two-thirds of the six contracts offered by Japanese shipping companies during the same period. A shipbuilding contract between a shipping company and a shipbuilder in the same country is a typical way of beating a crisis in the shipping and shipbuilding industries. These days, however, Chinese shipbuilders are dominating market segments with low entry barriers by supplying their product...

Top Six Largest Boxships

However, the sea giant features 191,317 in dwt capacity, considerably lower from some of its following counterparts. The behemoth was built by South Korean Samsung Heavy Industries (SHI). Boasting a length of 399.9 m and a width of 58.8 m, the boxship will serve the Asia-Europe trade lane as part of the LL1 service. Five more of its sister ships are being built for the company at SHI and they are scheduled for delivery later in 2017. The 20,568 teu Madrid Maersk has secured the second place on the list based on the teu capacity, however it still holds the crown when it comes to dwt as it features 210,009 dwt capacity. Built by SHI’s compatriot Daewoo Shipbuilding and Marine Engineering (DSME), the colossal boxship has a length of 399 m and a width of 58.6 m. Madrid Maersk belongs to the 2n...

Slump-hit shipbuilding sector cuts workforce in 2016

South Korean shipbuilders and related firms sharply reduced the size of their workforces last year in the face of a drawn-out slump, industry data showed Tuesday. According to the data compiled by industry tracker Chaebul.com, the shipbuilding sector slashed its workforce by 8,670 last year, or a 14.8 percent cut. The figure includes regular and nonregular workers. South Korea’s major shipyards were in the midst of painful restructuring efforts last year due to snowballing losses stemming from a tumble in orders. The three major shipbuilders alone — Hyundai Heavy Industries Co., Samsung Heavy Industries Co. and Daewoo Shipbuilding & Marine Engineering Co. — implemented self-rescue plans, including asset sales and workforce reductions, to stay afloat. The shipbuilding ...

S. Korea to Shut Down Old Power Plants

South Korean President Moon Jae-in said on May 15 that eight out of the 10 coal-fired power plants in South Korea that have been in operation for at least 30 years would be temporarily shut down from June 1 to 30 this year before the 10 power plants are permanently shut down before the end of his term. The purpose of this measure is fine dust reduction. At present, a total of 59 coal-fired power plants are in operation in South Korea and 10 of them have been run for at least three decades. The 10 oldest coal-fired power plants are scheduled to be shut down from March to June each year starting from 2018 before the permanent shutdown. The 10 power plants account for only 10.6% of the total power generation capacity of the 59 power plants whereas they represent 19.4% of the total pollutant e...

China to Catch up with Korea in Steel, Smartphones in 5 Years

Korea’s steel, petrochemical and smartphone industries are expected to maintain a competitive edge over China for only around five more years, studies suggest. The Korea Institute for Industrial Economics and Trade in a report earlier this month said Chinese companies are catching up with their Korean rivals in terms of quality and technology. The report covered the automotive, shipbuilding, general machinery, steel, petrochemical, textile, food, home appliance, mobile communication device, display and semiconductor industries. China has already overtaken Korea in some industries. Some data suggest China is now 10 percent ahead of Korea in non-memory semiconductor technology, which accounts for 75 percent of the global chip market. According to the Korea International Trade Associati...

POSCO Daewoo Seals 50B Won Transformer Deal with National Grid of UK

POSCO Daewoo announced on May 3 that the company signed a contract to supply a total of 50 billion won (US$45 million) worth of transformers through an international competitive bidding placed by National Grid, a government-run power corporation of the UK in April. Through this agreement, POSCO Daewoo will supply 14 400kV ultra-high voltage transformers and nine 275kV super-high voltage transformers produced by Hyundai Electric & Energy Systems to substations in the UK operated by National Grid for the next three years from 2018 to 2020. POSCO Daewoo has supplied 25 transformers to National Grid for six years since the first contract amounting to 130 billion won (US$117 million) with National Grid in 2011. They are planning to ship an additional nine units in the future. Some analysis ...

Hyundai Heavy’ 4 Spin-off Companies Show Starkly Different Stock Prices

Hyundai Heavy Industries (HHI) relisted on the Korean stock exchange on May 10 along with its three spinoff companies. Hyundai Heavy Industries (HHI) saw its stock prices skyrocket in early trading on the first day, while its three spinoff companies – Hyundai Electric & Energy System, Hyundai Robotics and Hyundai Construction Equipment – all fell short of the opening price. According to Korean stock exchange sources on the 10th, HHI’s shares rose 14.97 percent to close at 185,000 won (US$164) compared to a day earlier, recording a new high in 52 weeks. In March, HHI decided to spilt up into an independent entity from non-shipbuilding operations and spin off its electric electronic business to Hyundai Electric & Energy System, robot and automation system business to Hyundai Robotics...

Hyundai Merchant Marine to Purchase Hanjin’s Terminal in Spain

Hyundai Merchant Marine Co. (HMM) will purchase a port terminal in Spain which was operated by Hanjin Shipping Co. The nation’s largest shipping company said in a regulatory filing on May 11 that it will buy a 100 percent stake in the Total Terminal International Algeciras (TTIA) in Spain for 117.6 billion won (US$104.02 million). It said the money to be used to make the purchase is equal to 12 percent of the company’s net worth as of late 2016 and 2.7 percent of its total assets. The formal contract will be signed on the 15th. The TTIA terminal is located in the strategic logistics hub in where Europe, Africa and South America intersect. It has an annual handling capacity of 1.86 million TEU and can accommodate large container ships with capacities of over 10,000 TEU. The terminal i...

BRIEF-DONG Energy settles dispute with Technip and Daewoo over Hejre platform

May 4 Dong Energy says: * Dong Energy and supplier consortium of Technip France and Daewoo Shipbuilding and Marine Engineering Co. Ltd (DSME) have entered into a settlement agreement regarding dispute, including arbitral claims, related to EPC contract for the Hejre platform * Says settlement agreed will have a positive impact for Dong Energy on cashflow and will reduce provisions made in relation to Hejre project with a positive EBIT effect of DKK 0.9 billion within discontinued operations * Says according to agreement, supplier consortium holds full responsibility for disposal of Hejre platform, which will be dismantled by DSME * The settlement does not affect the ongoing assessment with Bayerngas on re-development alternatives for the Hejre field. * Says this does not change Dong Energy...

World’s First Autonomous, Zero Emissions Ship to Be Ready by 2020

Norwegian maritime technology expert Kongsberg and its compatriot fertilizer producer Yara have teamed up on a project to build world’s first autonomous and zero emissions ship. Named Yara Birkeland, the vessel will be the world’s first fully electric container feeder, the duo claims, adding that the ship would produce zero emissions. Operation is planned to start in the latter half of 2018, shipping products from Yara’s Porsgrunn production plant to Brevik and Larvik in Norway. Yara Birkeland will initially operate as a manned vessel, moving to remote operation in 2019 and expected to be capable of performing fully autonomous operations from 2020. “Every day, more than 100 diesel truck journeys are needed to transport products from Yara’s Porsgrunn plant to ports in Brevik and Larvik wher...

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