Order Intake Surpasses 50 Trillion Won This Year; Three Major Korean
South Korean shipbuilders have achieved a significant milestone this year as the cumulative order intake of the three major companies has exceeded 50 trillion won. This achievement highlights the industry’s strategic focus on securing orders for highly profitable vessels, including liquefied natural gas (LNG) carriers.
Selective Order Intake Strategy Pays Off
Industry analysts note that South Korean shipbuilders, namely HDKSOE, Samsung Heavy Industries, and Hanwha Ocean, have been successful in selectively securing orders for lucrative vessels. This approach has enabled the companies to stay on track to meet their order-intake targets for the year. The cumulative order intake of these companies reached $37.62 billion, equivalent to approximately 50.8 trillion won.
Industry Growth and Challenges Ahead
While the industry celebrates its continued growth in order intake, concerns have been raised regarding labor unions demanding excessive compensation and engaging in industrial action. These challenges pose a burden for management and could potentially impact the industry’s progress.
HDKSOE, the leader in the South Korean shipbuilding sector, has recorded a cumulative order intake of $18.71 billion for the year, filling 80.3% of its annual target. Samsung Heavy Industries and Hanwha Ocean have also made significant progress towards their respective order-intake goals.
Focus on Profitable Vessels
The industry’s success in order intake can be attributed to its strategic focus on highly profitable vessels. South Korean shipbuilders have secured orders for a significant number of LNG carriers this year, with HDKSOE alone securing orders for 17 vessels. The country’s shipbuilders hold a 61% share of the LNG carrier market this year.
According to industry experts, South Korean shipbuilders are poised to exceed their order-intake targets for the year by continuing to selectively secure orders based on profitability. However, the challenges posed by labor unions demanding excessive compensation remain a concern for industry management.
In conclusion, South Korean shipbuilders have demonstrated resilience and strategic foresight in achieving significant order intake milestones this year. Despite facing challenges, the industry remains optimistic about its growth prospects in the long term.
