Shipping industry competes for marine plants

The shipping industry is expected to rush in marine plants competition.

According to the shipbuilding industry on August 26, Daewoo Shipbuilding Marine Engineering (DSME) escaped from their work out program recently and are now under negotiations with an overseas petroleum company for a hundred billion dollars worth of marine plants. They are expected to sign a contract soon.

Because DSME couldn't even participate in public bids for the past two years because of their work out program, this is the first set of results for DSME since their release from the work out program. DSME is planning to foster marine plants as their next generation main business. It used high value added LNG vessels to escape the work out program.

Samsung Heavy Industries (SHI) was without any orders for marine plants in the first half this year but is going into negotiations worth 600 million dollars for marine plants in Southeast Asia and the North Sea, 50 million dollars more than the total amount last year. SHI predicted it will sign a contract within the next month, if not sooner.

Hyundai Heavy Industries triggered the recent competition by receiving marine plants orders worth 800 million dollars from Exxon-Mobile in U.S. With the help of this contract, the company is strengthening its sales network and doubling its marine plants goals from its original goal of 1.2 billion dollars.

The marine plant market is expected to expand due to the reviving petroleum development business.