Hyundai Heavy Industries Co. received an offshore facility order in four years. Korea’s shipbuilding entities won 65 percent of global orders in September.
Hyundai Heavy Industries made a public announcement on Wednesday that it signed an agreement with LLOG Exploration Company, an oil development company in Houston, the U.S. on Tuesday for the "King’s Key" project, which is a semi-submersible floating production system (FPS).
King’s Key FPS is expected to be designed for about one year and its manufacturing is expected to begin in August next year. This facility will be used for the crude oil development project that is under progress by LLOG Exploration Company in the Gulf of Mexico located in the southern part of the U.S.
It has been 47 months since November 2014 Hyundai Heavy Industries acquired overseas plant construction orders. The Korean shipbuilding company currently does not have any work as its last overseas project "NASR" was completed this August. Restructuring such as voluntary resignation is underway due to idle human resources. This project will not solve the issue concerning unused manpower immediately but it shall give a positive effect to additional orders.
It is certain that Korea’s shipbuilding industry will win back global first place on a yearly basis by winning consecutive orders this year. According to British shipbuilding and marine analysis agency Clarkson Research Services, Korea obtained 1.63 million CGT (compensated gross tonnage) among the global marine order of 2.52 million CGT. This amounts to 65 percent of the total number of global orders, which made Korea to rank world No. 1 for five months in a row, surpassing China which remained at a mere 14 percent.
Korea’s accrued performance of this year is 9.5 million CGT, which allowed Korea to maintain first place, widening the gap with the second place China (6.51 CGT) by 2.99 CGT. The total residual orders of Korean shipbuilding entities are 20.37 million CGT. It surpassed 20 million CGT in one year and nine months since recording 20.74 million CGT in January 2017.