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S.Korea: Bleak Outlook for Domestic Shipbuilding Industry |
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Friday, 19 March 2010 |
 Domestic shipbuilding companies are forecasted to struggle in the next two to three years due to unfavorable business conditions. Some claim that large-sized shipyards must diversify their businesses to overcome the crisis.
Hana Institute of Finance (Hanaif) said on Wednesday "Local shipbuilding
industry will continue to face difficulties as the amount of new orders
and delivery decreases. Some shipyards could be subject to
restructuring additionally."
"Shipbuilding companies’ delivery volume for this year is predicted to
drop over 10% against last year. Delivery delay and cancellation are
expected to continue until 2012" Hanaif prospected. The institute also
remarked that whether the volume of new orders will recover is hard to
tell until issues regarding the backlog of orders and excessive shipping
are resolved.
Researcher Lee Eun-Chang said "South Korea’s large-sized shipyards that
have overcome the crisis in the 1970s and 1980s must now cope with
today’s crisis by business diversification. They must now build
eco-friendly vessels, polar navigating vessels, ocean plants, cruises
and wind power stations. Small and medium sized shipyards must ensure
internal stability by focusing on the type and shape of the vessels they
make in order to respond to the crisis."
Source: Maeil Business Newspaper
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