DSME aims to become global No. 1

Daewoo Shipbuilding & Marine Engineering Co. said it aims to become the world`s most profitable shipbuilder by 2008, projecting about 10 trillion won in sales and 500 billion won in net profits.

Jung Sung-leep, chief executive of the world`s No.2 shipbuilder, said although it won`t be easy to beat Hyundai Heavy Industries Co. in sales, his company will see greater profits as it is a leader in building high-value added liquefied natural gas carriers.

"There will be constant demand for LNG carriers at least for the next 10 years as countries like Qatar, Russian and Nigeria are carrying out new LNG development plans," Jung told reporters in a year-end party on Thursday evening.

"Profits of shipbuilders will jump next year with more LNG vessels and better shipyard building facilities."

Price of thick plates for ships will fall and higher ship prices will be reflected in the balance sheets from next year, he said.

The company, which holds a self-developed LNG regasification vessel technology, said its sales are expected to reach 5 trillion won next year. More than half of its sales come from LNG carriers.

Daewoo Shipbuilding`s sales and net profits last year were 4.7 trillion won and 232 billion won compared to Hyundai Heavy`s sales of 9.84 trillion won and net profits of 36.7 billion won.

In the first three quarters of this year, Daewoo saw sales of 3.33 trillion won and a net loss of 24.3 billion won while Hyundai recorded sales of 7.52 trillion won and net profits of 113.7 billion won.

(sophie@heraldm.com)



By Kim So-hyun