AsiaShipyards

SPP sale sees Korea Line parent in pole position

The parents of two South Korean shipping lines have been linked with adding a shipyard to their sprawling business empires.

Both Samla Midas Group, the owner of Korea Line Corporation, and Harim Group the owner of Pan Ocean, are being linked in local media with buying out Korean yard SPP. Another firm, BN Group, a Busan-based marine equipment manufacturer, has also been reported as interested in taking over SPP, which runs three yards in South Korea.

SPP, which specialises in product tankers, ran into financial difficulties five years ago. Its creditors have said January 14 will be the date for bids for the yard.

SM Group, which took over KLC in 2013, is viewed as the early favourite to take over SPP, and is rumoured to have already submitted a letter of intent.

There is a chance that creditors will decide to split the sale up, selling each of the three yards separately.

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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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