S. Korea＇s major shipbuilders cut order targets

South Korea＇s major shipbuilders have lowered their order targets this year as a global economic slump reduces shipbuilding demand, Yonhap News reported quoting industry sources Tuesday. Daewoo Shipbuilding & Marine Engineering, the world＇s third-largest shipbuilder, is aiming to win orders valued at $10 billion this year, 42.8 percent lower than last year＇s target of $17.5 billion. The shipbuilder won orders worth $11.8 billion last year.

Samsung Heavy Industries, the world＇s second-largest, also set its yearly order target at $10 billion this year, compared with last year＇s $15 billion.
The global financial crisis has dried up capital markets, making it difficult for shipping lines to get loans for new vessels and pay for the ships. Daewoo Shipbuilding and other rivals missed their 2008 order targets.
Hyundai Heavy Industries, the world＇s No. 1 shipbuiler, has not yet set its order target, but would receive less orders this year, company official said.
Last year, the shipbuilder clinched $28.2 billion worth of orders, also falling short of its yearly target of $29.4 billion. The company had no new orders for three months since October.
However, unlike other industries that are being hit by the worsening global recession, shipbuilding is one of the few sectors that will report better earnings last year based on the orders they have. They have order backlogs stretching almost four years.
Shipyards in South Korea, the world＇s biggest shipbuilding nation, expect exports to rise this year to a record $53 billion, according to the Korea Shipbuilders＇ Association.