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Shipbuilding industry to pick up next year: report

Shipbuilding industry to pick up next year: report

Top three shipbuilders expected to raise 2014 order target by 12%

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Published : 2013-12-26 21:21
Updated : 2013-12-26 21:21

The nation’s shipbuilding industry, which has struggled for years since its peak in 2007, is on track for a recovery next year, boosted by a rebound in new orders, a report by the Woori Investment & Securities said.

“The top three shipbuilders ― Hyundai Heavy Industries, Daewoo Shipbuilding & Marine Engineering and Samsung Heavy Industries ― are expected to raise their annual order target by 12 percent on average next year, compared with that of 2013,’’ the report said.

Growing demand for liquefied natural gas carriers will lead new shipbuilding orders in 2014. Performance in offshore plants, however, will be flat next year.

“The shale gas production in North America has contributed not only to a fall in LNG price but also to a rise in demand for LNG carriers,” the report said.

Japan, South Korea and India, all of which are major LNG importers, are forecast to make new orders for LNG carriers.

Hyundai Heavy Industries, the nation’s top shipbuilder, will raise its 2014 order target by 11.3 percent to 15.5 trillion won ($14.6 billion).

DSME and Samsung Heavy will also raise their annual order targets by 13.3 percent and 10.3 percent, respectively, next year, the report said.

A sign of a business pick-up in the shipbuilding industry was sensed from the latter part of this year in line with a gradual increase in global cargo volume.

“Korea’s shipbuilders performed well this year, sweeping the world’s top three spots in shipbuilding orders this year,’’ U.K.-based Clarkson Research Services said.

Hyundai Heavy Industries and DSME have already met their annual goal in new orders, while Samsung Heavy Industries is nearing its annual order target of $13 billion.

Hyundai Heavy Industries, which missed its target last year, bounced back this year with orders soaring to $25.7 billion as of Dec. 24, exceeding its annual order target of $23.8 billion. DSME also exceeded its annual order target of $13 billion.

By Seo Jee-yeon

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