Prospects for Korea’s shipbuilding industry in 2015

Korea’s major shipbuilders had a pretty tough time in 2014.

Out of the country’s three major players, only Daewoo Shipbuilding & Marine Engineering hit its order target last year.

It received orders for 68 ships and an offshore plant.

Korea’s other major players, Hyundai Heavy Industries and Samsung Heavy Industries, both failed to hit their targets.

Hyundai Heavy Industries had orders for 98 vessels, worth more than 15 billion U.S. dollars, but this was way below its goal of 25 billion dollars.

Market experts partly attribute last year’s weak performance to falling global oil prices, which negatively affected demand for offshore plants and drill ships.

Market uncertainties are expected to hamper business this year as well.

The Export-Import Bank of Korea forecasts vessel and marine plant orders to drop twelve percent this year compared to last year.

Tough competition from competitors in China and Japan also poses a threat to the nation’s shipbuilders.

While Chinese shipbuilders have a market edge in producing small-and-mid-sized low price vessels, Japan is gaining price competitiveness due to the weak yen.
Source: Arirang News.