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Deepening Recession 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 ...

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France nationalises shipyard to thwart Italian majority, angering Rome

France will nationalise the STX France shipyard to prevent an Italian firm taking majority control, the economy minister said, triggering an angry response from Rome to President Emmanuel Macron’s first big industrial policy decision. As France’s most avowedly pro-business leader in decades, few would have predicted the former investment banker’s first big move in the corporate sector would be a nationalisation, even if the government says it will only be temporary. However, his action, which added further strain to France’s relationship with Italy, fits with the interventionist style of other ...

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Through The Looking Glass: Exploring The Orderbook

The containership orderbook has diminished by 30% in capacity terms since the start of 2016. Ordering during this period has remained very limited, with capacity contracted in 2016 at 0.29m TEU, representing the lowest level since 2009, and contracting in the first half of 2017 totalling less than 40,000 TEU. Despite this, however, there are several important aspects of the containership orderbook to consider. Getting Smaller The first of these concerns the change in the overall size of the orderbook, with the volume of capacity on order shrinking considerably over ...

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Korean Big Three Shipbuilders Iplement Up to 90% of Self-rescue Plans

Hyundai Heavy Industries Co.’s move to secure 1 trillion won (US$892.86 million) of liquidity is part of its self-rescue plans to survive. In addition to Hyundai Heavy, the nation’s big three shipbuilders have implemented up to 90 percent of their self-rescue plans, accelerating restructuring and struggling to survive. The shipbuilding industry is slowly picking up and the South Korean shipbuilding industry temporarily ranked top of the world in the first half of this year. However, it hasn’t secure enough new orders compared to the level in the boom. According to ...

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Rig builder Sembcorp Marine Q2 net profit falls 51 percent

Singaporean rig builder Sembcorp Marine Ltd on Thursday posted a 51 percent fall in second-quarter profit because of a slowdown in orders and foreign exchange losses. The company, along with rival Keppel Corp, has been hit by an oversupply of offshore oil drilling rigs, with customers delaying contracts and refraining from placing new orders with oil prices expected to stay lower for longer. Sembcorp Marine reported a profit of S$5.6 million ($4.13 million) for the three-month period ended June, compared with S$11.5 million a year ago. The company, majority owned ...

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France will nationalise disputed shipyard in standoff with Italy- Le Monde

The French government has decided to nationalise the STX France shipyard in an ownership standoff with Italy, Le Monde newspaper reported on Thursday, marking President Emmanuel Macron’s first big industrial policy decision. As France’s most pro-business leader in decades, few would have predicted the former investment banker’s first big move in the corporate sector to be a nationalisation. However, his action fits with the interventionist style of other postwar French leaders. It also crosses into the strategically sensitive defence sector where many national governments prefer to wield influence over ownership. ...

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Philly Shipyard Delivers Third Product Tanker to Kinder Morgan

Philly Shipyard, Inc. (PSI), the sole operating subsidiary of Philly Shipyard ASA (Oslo: PHLY), today delivered the American Liberty, the third of four next generation 50,000 dwt product tankers that it is building for American Petroleum Tankers (APT), a subsidiary of Kinder Morgan, Inc. This delivery is the 27th vessel built by PSI (formerly known as Aker Philadelphia Shipyard, Inc.). The next generation 50,000 dwt product tanker is based on a proven Hyundai Mipo Dockyards (HMD) design that also incorporates numerous fuel efficiency features, flexible cargo capability, and the latest ...

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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 ...

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Daewoo Shipbuilding loses rig arbitration case with Songa

Daewoo Shipbuilding & Marine Engineering Co. lost in an international arbitration case over a rig spat, industry sources said. In 2011, the major South Korean shipyard clinched a deal to build four semisubmersible drilling rigs for Songa Offshore SE of Norway. The South Korean rig builder launched the arbitration case against Songa Offshore for two drilling rigs in 2015, claiming that the costs increased due to errors in design. It sought US$373 million in compensation. But the arbitration tribunal in London recently ruled in favor of Songa Offshore. Daewoo Shipbuilding ...

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Japan: JBIC to offer syndicated loans to boost ship exports

The Japan Bank for International Cooperation plans to provide a total of $28.3 million in syndicated loans with French bank BNP Paribas to help a major Danish shipping operator’s unit buy cargo vessels to be built by leading Japanese shipbuilder Imabari Shipbuilding Co., Jiji Press learned. The government-affiliated JBIC aims to revive the domestic regional economies relying on the shipbuilding industry by giving financial support for vessel exports at a time when the industry faces a global slump due to oversupply, informed sources said. Under the export deal brokered by ...

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France to nationalise STX shipyard if Italy snubs ownership deal

The French state said on Wednesday it would nationalise the STX France shipyard if Italy does not accept its offer to split STX’s capital equally, putting down a marker on the limits of economic liberalism under new president Emmanuel Macron. The threat raises the stakes in a standoff with Rome over the shipyard’s fate, the only one in France with facilities large enough to build aircraft carriers. Economy Minister Bruno Le Maire said nationalisation would give the state more time to find a better shareholder deal, but even if temporary, ...

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Shipbuilders go through grim scenario; Cochin Shipyard IPO to open on Aug 1

Realignments in the domestic shipbuilding industry over the past four years have not improved business prospects for key players in the sector. While state-owned Cochin Shipyard is coming up with its initial public offering, August 1 to August 3, efforts made by private shipbuilders to revive their businesses have been largely in vain. “The government is trying to boost the domestic shipbuilding sector for some time now. It is due to this IPO that the sector has come into the limelight,” Hitesh Avachat, deputy manager, CARE Ratings, said. “Otherwise prospects ...

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Hyundai Heavy sells Hotel Hyundai, near shedding all noncore assets

South Korea’s Hyundai Heavy Industries Co., which has been shedding non-core assets, said it will sell its entire stake in subsidiary Hotel Hyundai to domestic private equity firm Hahn & Company at 200 billion won ($178.7 million). All staff will be retained. With the deal, the company would have earned 1 trillion won from asset sale so far this year. The shipbuilding conglomerate in June last year vowed to improve its balance sheet by 3.5 trillion won through non-core asset sales, reorganization, and business rationalization in return for debt rescheduling ...

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Vard Registers Higher Ebitda Margins; Sustains Headway Into New Market Segments

Vard Holdings Limited (“VARD”, and together with its subsidiaries, the “Group”), one of the major global designers and shipbuilders of specialized vessels, today announced its financial results for the second quarter and first half-year ended 30 June 2017 (“2Q 2017” and “1H 2017” respectively). VARD registered a revenue of NOK 2.13 billion in 2Q 2017, largely unchanged from the previous corresponding quarter (“2Q 2016”), and up 20% from the preceding quarter ended 31 March 2017. VARD’s overall revenue was affected by softer activity at the Norwegian yards and the cessation ...

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Italy rejects French proposal to split control of STX shipyard equally – source

Italy rejected a French proposal to split ownership of the STX France shipyard equally with Paris, saying it wanted the state-owned Fincantieri shipbuilder to have a majority stake and control of the board, a Treasury source said. The company is being sold off following the collapse of South Korean parent STX, but Fincantieri’s bid has raised fears for French jobs at the Saint-Nazaire site on the Atlantic Coast, as well as for French interests. “The Italian government’s response to the 50:50 proposal is ‘no’,” the source said. “The red line ...

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