S. Korea`s major shipyards cut order targets

SEOUL, Jan. 13 (Yonhap) -- South Korea's major shipbuilders are lowering their
order targets this year as a global economic slump reduces shipbuilding demand,
industry sources said Tuesday.
Daewoo Shipbuilding & Marine Engineering Co., the world's third-largest
shipbuilder, is aiming to win orders valued at US$10 billion this year, 42.8
percent lower than last year's target of $17.5 billion. The shipbuilder won
orders valued at $11.8 billion last year.
Samsung Heavy Industries Co., the world's second-largest, also set its yearly
order target at $10 billion this year, compared with last year's $15 billion.
The global financial crisis has dried up capital markets, making it difficult for
shipping lines to get loans for new vessels and pay for the ships. Daewoo
Shipbuilding and other rivals missed their 2008 order targets.
Hyundai Heavy Industries Co, the world's No.1, has not yet set its order target,
but would receive less orders this year, company official said.
Last year, the shipbuilder clinched $28.2 billion worth of orders, also falling
short of its yearly target of $29.4 billion. The company had no new orders for
three months since October.
However, unlike other industries that are being hit by the worsening global
recession, shipbuilding is one of the few sectors that will report better
earnings last year based on the orders they have. They have order backlogs
stretching almost four years.
Shipyards in South Korea, the world's biggest shipbuilding nation, expect exports
to rise this year to a record $53 billion, according to the Korea Shipbuilders'
Association.
sam@yna.co.kr
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