SHIPBUILDING

Hyundai Heavy sells U.S. unit Hyundai Ideal Electric

South Korea’s Hyundai Heavy Industries Co. shed Hyundai Ideal Electric Co., its money-losing electric motors making subsidiary in the United States as part of restructuring efforts. Hyundai Heavy Industries sold Hyundai Ideal Electric to a privately held affiliate of Gulf Electroquip Ltd, electric motors manufacturer based in Texas, U.S., the company announced on Wednesday (local time). The financial terms of the deal were not disclosed. It is reported that Gulf Electroquip plans to maintain current workforce as well as service guarantees for customers. Established in 1903 in the U.S., Ideal Electric makes electric power motors and generators. Hyundai Heavy Industries took over the American motor maker in 2007, but decided to sell off the firm as part of its cost-saving scheme, said a Hyun...

SHI partners with Inmarsat for ‘smart ship’ initiative

South Korean shipbuilder Samsung Heavy Industries (SHI) has signed a memorandum of understanding (MoU) with Inmarsat to receive the connectivity capability required for its ‘smart ship’ initiative. The MoU will see SHI incorporate Inmarsat’s satellite-based Fleet Xpress connectivity platform in its newbuildings during the construction stage. The deal is subject to a definitive agreement, and will allow SHI to retain remote connections to vessels and Inmarsat supporting SHI’s services via a dedicated bandwidth under a Certified Application Provider subscription. Samsung Heavy Industries & Construction Central Research Institute director Dr Booki Kim said: “Samsung Heavy Industries Co. considers itself to be a technology leader, which has always worked closely with owners to deliver ship...

Hyundai Mipo shuts down dock, other shipyards in voluntary leave

Following suit of its bigger shipyard Hyundai Heavy Industries, Hyundai Mipo Dockyard Co. decided to shut down a dock in Ulsan base for three months due to shortage of work. According to a company official on Wednesday, Hyundai Mipo Dockyard will power down the fourth dock for three months until December. The fourth dock, the smallest among the four yards with a capacity to build 350,000-ton ships, has remained idle since the last vessel was shipped off on Aug. 17. The dock will stay open for finishing touches on ships on waters, said the company. It will renew full-fledged operation in December to make a roll-on/roll-off ship designed to carry wheeled cargoes and tracked vehicles. Its parent builder Hyundai Heavy Industries also endeavored to save costs by shutting down docks in turns ami...

DSME Will Not Split Up Its Special Ship Business

Daewoo Shipbuilding & Marine Engineering (DSME) discontinued the sell-off of its Special Ship Business (defense industry) Division, which had been gone ahead with as one of its management normalization projects, because of no economic benefit from the sell-off. DSME said it decided not to pursue the separation of the Special Ship Business Division through an August 25 announcement concerning a media report in May of last year, which said that it would sell off the defense business division separately. According to the company’s explanation, DSME has reviewed the sell-off of Special Ship Business Division in terms of legal and regulatory requirements and liquidity improvement effects, but came to a conclusion that a possibility of satisfying legal licensing requirements is slim an...

Daewoo Shipbuilding wins 215 bln-won contract for submarine parts

Daewoo Shipbuilding & Marine Engineering Co., a major shipyard here, said Friday that it has won a 215 billion-won ($191 million) deal to supply key parts for a submarine built by its local rival Hyundai Heavy Industries Co. Under the deal with Hyundai Heavy, Daewoo Shipbuilding will deliver the parts to its rival by 2021, it said. Hyundai Heavy is constructing the third 3,000-ton submarine as part of the Chang Bogo-III project in a deal with the Defense Acquisition Program Administration, the country’s arms procurer. Under the 10 trillion-won deal, South Korea plans to build nine 3,000-ton submarines in three batches. Two submarines are already under construction by Daewoo Shipbuilding. The same parts are used in the two submarines as well. The first batch of three submarines wi...

Korean Gov’t Planning to Merge STX and Sungdong

The South Korean government holds a meeting next month in order to discuss a merger between Sungdong Shipbuilding & Marine Engineering and STX Offshore & Shipbuilding.  At present, STX is being managed by Korea Development Bank (KDB) and Sungdong is being managed by the Export-Import Bank of Korea. Due diligence is currently underway in the shipbuilders by the respective creditor banks. The government is planning to carry out downsizing and the merger based on the result of the due diligence scheduled to become available next month. KDB has poured 4.5 trillion won (US$4.0 billion) so far into STX, which adopted a voluntary restructuring agreement in April 2013. Nevertheless, STX went into receivership in June last year due to the lack of work and profitability. Although the receive...

Hyundai Heavy Industries loses $1.44 bn ship order to China

South Korea’s largest shipbuilder Hyundai Heavy Industries Co. received a surprise setback, losing a $1.44 billion container ship deal to two Chinese rivals. CMA CGM, the French container transportation and shipping company, placed orders with China’s Hudong Zhounghua Shipbuilding Co. and Shanghai Waigaoqiao Shipbuilding Co. for nine container vessels with the world’s largest capacity of 22,000 twenty-foot equivalent units (TEU). According to industry insiders, Hyundai Heavy Industries was sure of winning the deal. Earlier this month, it had mentioned during its second-quarter earnings conference call that it was in the final stage of vying against China for an order of ultra-large container ships and was confident of delivering good news. Pricing would have been the primary losing factor,...

Korean Shipbuilders Maintain Three Top Rankers in Terms of Remaining Orders

Korean shipbuilders — Daewoo Shipbuilding & Marine Engineering (DSME), Hyundai Heavy Industries, Samsung Heavy Industries — remained the world’s top three in terms of orders remaining. According to the August issue of the World Shipyard Monitor published by shipbuilding and marine analysis agency Clarkson Research on August 18, the shipyard with the largest order backlog in the world as of the end of last month is DSME (5,964,000 CGT and 82 vessels). Compensated Gross Tonnage (CGT) is an indicator of the amount of work that is necessary to build a given ship and is calculated by multiplying the tonnage of a ship by a coefficient, which is determined according to type and size of a particular ship. Hyundai Heavy Industries (Ulsan, 33,300 CGT and 69 vessels) and Samsung...

How Daehan Shipbuilding Prospers after Undergoing 2 Workouts

Daehan Shipbuilding, a mid-sized shipbuilder in Haenam, South Jeolla Province, is seeing its order booking volume rise fast. During the first half of this year, the company won orders that exceeded twice the annual goal. Unlike any other shipyards that stopped operations of docks, Daehan has secured orders worth more than two years. It is also increasing hiring, which is rare in the shipbuilding industry. Daehan Shipbuilding clinched deals of building 14 “Aframax” ships (115,000 metric tons) during the first half, worth 600 billion won. Including options, the total number of vessels to build will rise to 18. Industry officials said that this is because the shipyard succeeded in its restructuring effort as the employees voluntarily accepted pay cuts and took no-pay leaves of abs...

DSME Exports Submarine Named ‘Nagapasa’ for First Time in Korea

Daewoo Shipbuilding & Marine Engineering (DSME) exported submarines for the first time in Korea. In 1988, this rare feat was accomplished in 30 years since Korea has made a lot of efforts to develop its own submarine after receiving technology from Germany. On July 2, Daewoo Shipbuilding & Marine Engineering (DSME) held a ceremony in honor of the delivery of the first submarine among three 1400 ton-class submarines which the Indonesian Ministry of Defense asked DSME to build in 2011 at Okpo Shipyard on Geoje Island. The ceremony was attended by 80 VIPs including Ryamizard Ryacudu, Indonesian defense minister, Ade Spandi, chief of staff of the Indonesian Navy, and Jung Sung-rip, president of DSME. The submarine delivered on this day was named the Nagapasa after the arrow used by anc...

62% of Shipyards Worldwide Shut Down

With domestic shipbuilders suspending the operation of their docks due to ongoing sluggish demand, six out of 10 dockyards worldwide have shut down in the past nine years. According to a report from U.K.-based shipping and shipbuilding market analysis firm Clarkson Research, there were a total of 934 “active” shipyards globally in 2009. At that time, many firms scrambled to build shipyards to meet the demand in the peak of the shipbuilding cycle from 2007 to 2008. This number has now dropped by 62% to stand at 358 yards as of start July 2017, the lowest number of active yards for many years. Clarkson also warned that the remaining yards would have to struggle to survive. The report said, “30 percent of the remaining yards will be out of work by the end of this year. The number of shipyards...

Samsung Heavy Industries to Shut Down Dock for Lack of Work

According to industry sources, Samsung Heavy Industries is planning to shut down its floating dock G1 located in Geoje on August 1. Late last month, its oldest dry dock was shut down. At present, Samsung Heavy Industries has three dry docks, four floating docks, and one dock for offshore plant construction. The G1 dock was put into operation in November 2001. In January 2002, it succeeded in building a ship on the sea for the first time worldwide with it. At that time, Samsung Heavy Industries used mega-block technology to build the ship by connecting 10 super-large blocks to one another. Before this historical event, floating docks were used for ship repairing in most cases. Floating docks played an important role during South Korean shipbuilders’ facility expansion that started in the mi...

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