AsiaShipyards

Samsung Heavy eyes taking Singapore on at ship repair

Samsung Heavy Industries (SHI) will pursue new revenue streams as it fixes its restructuring, the shipbuilder’s ceo, Park Dae-young said today. The yard boss said SHI will look at getting into ship repair, aiming to take a slice of business away from Singapore.

Singapore – via Keppel and SembCorp – has built up a world-beating reputation for vessel repair and maintenance.

In Hyundai Mipo, South Korea used to boast the world’s largest ship repair yard. However, as the nation grew fast into a world leading shipbuilder, Hyundai Mipo transferred its repair work to a joint venture in Vietnam at the turn of the century. The fact SHI is even considering repair as a business stream shows just how dramatically newbuild orders have slumped in South Korea in recent months.

Speaking at a shareholders meeting, Park also said SHI is looking at more outsourcing to smaller Korean shipyards, or yards in China and Indonesia.

SHI’s huge $1.2bn restructuring plans were approved by creditors at the start of June. The yard has suffered from an ordering downturn and the crash in the offshore markets.

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Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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