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.