Samsung Heavy Industries, a major South Korean shipbuilder, faces challenges due to labor shortages and limited dock capacity. To address these issues and meet growing demand, they’ve strategically decided to outsource the construction of four Suezmax tankers to Chinese shipyards. This decision comes after a prolonged shipbuilding slump that began in 2016. The industry’s rebound post-COVID has led to a surge in orders, but the skilled workforce hasn’t grown at the same pace, reports Business Korea.
Novel Approach
Samsung Heavy Industries has adopted a novel approach to shipbuilding by subcontracting the construction of four Suezmax tankers to a Chinese shipyard. This strategy involves leveraging Chinese shipyard docks and labor while Samsung provides ship design and procures major equipment.
This collaborative approach offers several advantages, primarily cost-effectiveness. By utilizing lower-cost resources in China, Samsung can maintain profitability despite lower order prices. This strategy aligns with the broader trend of Korean shipbuilders seeking innovative solutions to address production challenges. Other Korean shipbuilders are also exploring various techniques, including expanding their production capacity in Southeast Asia and leveraging partnerships with specialized companies in regions like Singapore.
This collaborative model could potentially benefit all parties involved, including Korean shipbuilders, Chinese shipyards, and shipowners. However, careful consideration and strategic planning are crucial to ensure the successful implementation and long-term viability of this approach.
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Source: Business Korea
