Shipbuilding industries may sweep world market again

Korean shipbuilding companies are expected to conquer global markets with the support of high productivity, technology, and won depreciation, beating Japan, for this year.

HSBC Securities recently revealed this in a report analyzing the Korean shipbuilding industry. It also predicted a rise in stock prices for Hyundai Heavy Industries, Samsung Heavy Industries, and Hanjin Heavy Industries. The securities company predicted that the U.S economy slowdown in 2001 may lead to the shipbuilding industry not doing as well as in 2000, but that the European market would show relatively favorable economic expectations, calling off the negative effects of the American slowdown.

Especially, the HSBC pointed out, as the IMO (International Maritime Organization) restricted tanker life spans to reduce environmental pollution, large sized tanker markets, where Korean shipbuilding companies have an edge, might be in higher demand for the next 5 years.

The HSBC predicted that Korean shipbuilding companies could be winners in the M&A games armed with large-scale productivity and prior technology. Meanwhile, 7 Japanese shipbuilding companies restructured into 3 firms through M & A's in the wake of increasing idle facilities.

Following Korea's ranking as first in the world shipbuilding market, Korea surpassed the productivity per capita over Japan by a wide margin. The falling won also supported Korea, garnering unexpected profits.