South Korea hits naval construction with a “giant” of 180 contracts

Started the merger between the two biggest shipyards in the world: Hyundai and Daewoo

South-Korean Hyundai Heavy Industries Group, the world greater naval construction holding has signed the beginning of an agreement to buy 55.7% of Daewoo Shipbuilding & Marine Engineering, which was in other time rival and N.2 on the sector’s global ranking. The deal, still pending of signature, will not alter the importance of the public capital within the new joint-venture, under the South-Korean Government. Market sources estimate both companies will come to an order book of 180 units, to add up to 154 ships assigned to Hyundai Samho and Hyundai Mipo branches.

New contracts in South Korea have rocked 67% only within last six months, reason why Sea Europe, European sector association, will sentence public financial support given systematically by Asian governments to their shipyards. “South Korean Public Banks continue to finance projects to loss meanwhile the Government has begun to start-up” a project to build 200 mega-trawlers “even when, regrets the association to which Aclunaga belongs, exists an overload in the market”.

(Source: Faro de Vigo)