Korea's three shipbuilders exceed US$30 billion in orders in 11 months

Korea's top three shipyards won stronger-than-expected shipbuilding orders worth over US$30 billion in the first 11 months of the year on strong contracts, industry sources said Dec. 10.

The three - Hyundai Heavy Industries Co., Daewoo Shipbuilding & Marine Engineering Co. and Samsung Heavy Industries Co. - clinched orders worth a combined $35.6 billion for ships and marine oil-drilling facilities by the end of November, the sources said.

They surpassed their yearly target of $28.5 billion by 25 percent and the value of their full-year orders is forecast to exceed the $37 billion, given ongoing contracts, they said.

The shipbuilders' impressive performance in the first 11 months was attributed to strong demand for oil-drilling facilities and high-priced ships such as LNG carriers and large container vessels.

The price of the oil tanker and container ship are expected to face a technical correction due to a rise in contracts, while the value of the LNG carrier and offshore plant won? plunge next year given the great demand for them,?said an official at the Korea Shipbuilders' Association.

In the first 11 months of the year, Hyundai Heavy Industries, the world's No.1 shipbuilder, received orders of $13.3 billion, with Daewoo Shipbuilding & Marine Engineering and Samsung Heavy Industries, the industry's No. 2 and No. 3 players, garnering orders of $10.6 billion and $11.7 billion, respectively.

In particular, Daewoo Shipbuilding & Marine Engineering topped the list of the world's offshore plants, receiving orders of offshore plants worth $4.2 billion, more than tripling last year's orders of $1.47 billion.