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Doosan Heavy’s Announcement of BW Issuance Plan Leads Its Stock Prices to Sharp Drop

Earlier on February 27, Doosan Heavy Industries & Construction Co. resolved to issue 500 billion won (US$430 million) worth of bonds with warrants or BWs in a board meeting. A BW refers to a bond issued with a right to claim a certain number or amount of new shares issued by a company at a price set before within a certain period after the issuance of the bond. Its issuance method is a public offering method which places top priority on shareholders. The bond matures in five years, and bondholders’ advanced redemption right (put option) can be exercised three years after the issuance. The exercise of pre-emptive rights can be made from one month after the issuance of the bond to one month before its expiration date, and its exercise price can be re-fixed at up to 80% of its defin...

Korean petrochemicals firms accelerating overseas push

 South Korean petrochemicals firms, led by LG Chem Ltd., are seeking to diversify their export destinations and establish more overseas production facilities, in a bid to reduce their dependence on China, industry sources said Wednesday. According to the sources, LG Chem, the country’s No. 1 player in the chemicals sector, is attempting to expand its presence in the North American and the European markets to sell its high-end products, thus trimming the portion of its exports to China that currently account for some 60 percent of foreign sales. LG Chem has been already operating plants in Vietnam and Poland, and selling goods produced at its production facilities there. Lotte Chemical Corp., the second-largest petrochemicals firm here, also operates plants in Malaysia, the United Sta...

Judges Are the Happiest at Work

Judges are most satisfied with their job, a survey says. The poll of 19,127 people in 621 occupations was conducted by the Korea Employment Information Service. Job satisfaction scores were compiled based on the points on a scale of 1 to 5 by about 30 people in each job, covering potential for professional development, salary, occupational continuity, working environment and social reputation. Judges scored high in most categories. Maritime pilots who maneuver ships in and out of port came second. They earn W120 million a year on average (US$1=W1,113). Education or research jobs take up the largest proportion among the top 20 rankings — university presidents or college deans, elementary school principals, teachers, professors, physics researchers and geology researchers. Others in th...

China oil giant Sinopec posts 44% jump in net profit

State-owned Chinese energy major Sinopec said 2016 net profit jumped 44 percent, its first annual profit rise in three years, as strong demand and better margins in its downstream refining business helped offset low oil prices. Sinopec –- a listed unit of China Petrochemical Corp –- saw net profit surge to 46.7 billion yuan ($6.8 billion), it said in a statement filed late Sunday to the Hong Kong stock exchange, where it is listed. Asia’s biggest refiner had previously seen profits dive around 30 percent in both 2015 and 2014. Sinopec president Dai Houliang said one reason for the “better-than-expected” results is that “demand for chemicals grew steadily”. While the upstream business was sluggish owing to low international crude oil prices, the downstream refining b...

NPS Calling for Partial Redemption of Corporate Bonds of DSME

  The National Pension Service (NPS) of South Korea said on March 26 that discussions are required for selective redemption of Daewoo Shipbuilding & Marine Engineering’s (DSME) maturing corporate bonds. In response, major shareholders such as the Korea Development Bank (KDB) and the Financial Services Commission (FSC) remarked that it should not happen because it will result in a lawsuit filed by the other institutional investors and individual investors. What the NPS has suggested is selective and preferred repayment of the principal and interest regarding 50% of the corporate bonds subject to no debt-equity swap. At present, more than 65% of the shipbuilder’s corporate bonds are held by pension funds such as the NPS and Korea Post and insurers and asset management firms investin...

HHI to Close Another Dry Dock in Ulsan

Pressured by a slump in new shipbuilding orders, the South Korean shipbuilder Hyundai Heavy Industries (HHI) informed that it is looking to close another one of its dry docks at the Ulsan shipyard, the Korean newspaper Pulse reported. The facility in question is the 380-meter-long Dock 5, which has a capacity to roll out 400,000 tons a year. The dock was mostly used to construct oil tankers, the Pulse reported. In May the company is scheduled to stop operations at its largest shipyard, the Gunsan Dockyard, whose annual capacity exceeds 1.3 million tons. Additionally, the works at HHI’s offshore dock in Ulsan are set to halt in late 2017. With these moves, the company will close four of its eleven facilities during the year, raising concerns regarding job security. The shipbuilder was cited...

Amazon CEO gets a ride on Korean super-robot Method

Amazon CEO Jeff Bezos got a real-life super robot manga moment by mounting on and piloting a super-size robot. “Awesome,” he tweeted after the experience during a MARS conference. Amazon has been sponsoring the MARS – standing for machine-learning, home automation, robotics and space – since last year and invites robotics companies around the world. The 14-feet tall robot – Method-2 – is made by South Korea’s Hankook Mirae Technology. The Original Posted by Maeil Business News

DSME to Sell Entire Business Together with Defense Unit Next Year

Lim Jong-ryong, chairman of the Financial Services Commission (FSC) of South Korea, said on March 21, “Merger and acquisition (M&A) is the ultimate goal of restructuring of Daewoo Shipbuilding & Marine Engineering (DSME).” In this regard, DSME will sell the entire business together with its defense unit next year. This is because it is impossible to separate the process of merchant vessels and military vessels and it will be easier to sell the company with lucrative business which is the defense unit. The M&A will be pushed ahead starting from next year. Creditors and the authorities agree that it is difficult to seek radical reform when the state-run Korea Development Bank (KDB) is DSME‘s main creditor bank and largest shareholder. The company will be sold entirely at th...

Samsung Heavy builds the world’s first 20,000 TEU-class container ship

South Korea’s Samsung Heavy Industries Co. on Wednesday unveiled its 20,000 twenty-foot equivalent unit (TEU)-class container ship, hitherto the world’s largest container carrier. The shipbuilder held a christening ceremony for the first of four 20,150 TEU container ships ordered by Japanese shipping company MOL in 2015 at its Geoje shipyard, South Gyeongsang. During the ceremony attended by Samsung Heavy Industry CEO Park Dae-young, MOL CEO Junichiro Ikeda and 90 representatives, the vessel was named MOL Triumph. The MOL Triumph, which measures 400 meters long, 58.8 meters wide and 32.8 meters high, is the world’s largest container ship that can transport 20,150 containers at once, according to the company. One TEU is equal to a single 20-feet container. When 20,150 containers are lined u...

Hyundai Merchant Marine signs with 2M Alliance

The South Korean shipping operator Hyundai Merchant Marine officially signed the strategic cooperation agreement with 2M Alliance, which participants are Maersk Line and MSC. The deal include slot exchanges and slot purchases on East-West routes, giving partial participation of the South Korean company to the world’s largest shipping alliance. The strategic cooperation agreement is valid for three years with an option to be extended and renewed. The agreement will increase the slot allocation of Hyundai Merchant Marine by 22% in comparison with the participation of the shipper in G6 Alliance, while in US West Coast allocation will rose by about 50%. “We believe this strategic cooperation to be a win-win for all parties. Maersk Line’s customers will have greater options on Trans-Pacific tra...

Posco Daewoo to win gas exploration right in Bangladesh deep sea

South Korean resource developer Posco Daewoo Corp. is all set to explore gas field in deep sea in Bangladesh in search of a jackpot similar to its discovery in Myanmar in nearby waters. Posco Daewoo said Wednesday it inked a production sharing agreement with the Bangladesh government and state-run petroleum company Petrobangla in a project to explore and develop deep-sea natural gas block 12 in southern sea of the country. The company has been fine-tuning details of the contract since it has been selected as preferred negotiator by the Bangladesh government in October last year.  Production sharing agreement is a common type of contract in major oil-producing countries including South East Asia, under which the government provides a contractor with the right to explore within a contract ar...

Most Korean Shipbuilders to Freeze Hiring

Major Korean shipbuilders will remain in a hiring freeze in the first half of this year amid a prolonged slump and gloomy outlook. Samsung Heavy Industries, which has hired around 400 new employees each year, said on Tuesday there will be no hiring in the first half of this year. It is uncertain whether they will recruit new staff in the second half. Daewoo Shipbuilding and Marine Engineering, in a massive restructuring drive amid financial constraints, is unlikely to recruit new employees for the time being. But Hyundai Heavy Industries and its subsidiaries Hyundai Mipo Dockyard and Hyundai Samho Heavy Industries plan to hire at least a handful of workers, unlike other Korean shipbuilders who have no plans to recruit new employees. The Original Posted By Jeon Soo-yong/The Chosunilbo

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