Go to contents

Samsung Heavy Industries wins order worth 2.9 trillion won

Samsung Heavy Industries wins order worth 2.9 trillion won

Posted June. 03, 2017 07:07,   

Updated June. 03, 2017 07:14


Samsung Heavy Industries has won order for an ultra-large marine plant project worth 2.85 trillion won (2.54 billion U.S. dollars). Expectations are growing for a rebound of the shipbuilding market as major Korean shipbuilders have won successive orders, while the price of new vessels is also showing signs of a rebound.

Samsung Heavy industries said it signed a contract to build a Coral first floating liquefied natural gas (FLNG) project in Mozambique, which is worth 2.8534 trillion won (2.54 billion dollars). It is the biggest marine plant project contract since the Egina floating production storage and offloading (FPSO) project worth 3 billion dollars that the shipbuilding giant acquired in June 2013.

As Korean shipbuilders have won successive orders for marine plant projects amid emerging signs of a rebound in new ship orders, there are growing expectations that the shipbuilding market will rebound.

Samsung Heavy Industries has won orders worth 4.8 billion dollars (13 vessels) including the latest deal so far this year. The three companies under Hyundai Heavy Industries Group namely Hyundai Heavy Industries, Hyundai Samho Heavy Industries and Hyundai Mipo Dockyard acquired orders for 62 vessels worth 3.8 billion dollars from January to May. The HHI Group only acquired orders worth 1 billion (12 vessels) during the same period last year. As the shipbuilding business group has already exceeded half of its new order target amounting to 7.5 billion dollars for this year through May, it expects to surpass the target for this year. Daewoo Shipbuilding & Marine Engineering also saw its new orders increase from 130 million dollars (two vessels) to 770 million dollars (seven vessels) in the same period year-on-year, with new orders gaining nearly six folds.

There are also signs of a rebound in new ship prices. According to Clackson Research, the U.K. shipbuilding and shipping industry analysis firm, the price of new bulk vessels (price of newly built bulk ships) increased in April this year, before the price of new oil tankers gained in May for the first time in two to three years.

“We have received significantly more inquiries about orders from ship-owner companies due to the perception that ship prices may have hit the bottom and are poised to rebound. It would be difficult for the shipbuilding market to recover overnight, but we clearly sense positive signs,” said a shipbuilding industry source.

Do-Hyong Kim dodo@donga.com