Daewoo Shipbuilding to focus on specialty vessels, eyes turnaround in 2017

By KH디지털2

Published : March 24, 2017 - 15:01

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Daewoo Shipbuilding & Marine Engineering Co., South Korea's embattled shipbuilder, said Friday that its portfolio will be mostly made up of LNG carriers and other specialty vessels, with the company expecting a business turnaround this year.

Its rosy outlook came a day after the country's state-run creditors of the shipyard, the world's largest by order backlog, announced a fresh rescue package worth 6.7 trillion won ($5.98 billion), but only if all stakeholders agree to a painful debt-for-equity swap plan.

(Yonhap)

The huge rescue measures, proposed by the state-run Korea Development Bank and Export-Import Bank of Korea, are the second round of bailout for the shipbuilder that has been suffering severe liquidity problems over heavy losses from offshore projects.

"Starting this year, a huge chunk of our portfolio will consists of LNG ships and other vessels that we specialize in. Most of loss-making offshore facilities projects have been completed," the company said in a statement.

Daewoo Shipbuilding said as of end-February, its order backlog came to 108 ships, 50 out of which are LNG-FSRU ships.

"We are going to reduce our exposure to risky offshore projects, while focusing on commercial ships and specialty vessels," it said. (Yonhap)

Daewoo Shipbuilding to focus on specialty vessels, eyes turnaround in 2017

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