HD Hyundai Co., the world’s second-largest shipbuilder, is likely to nearly double its vessel construction capacity in Vietnam to meet surging demand, reports KED Global.
Plan
HD Hyundai Mipo Co., a shipbuilding unit of the South Korean shipbuilding and machinery conglomerate, on Thursday unveiled a plan to raise the capacity of its shipyard in Vietnam to 15 vessels a year from the current 12 units. According to the plan, the company aims to improve the production efficiency of its subsidiary HD Hyundai Vietnam Shipbuilding Co. instead of adding more docks.
HD Hyundai Mipo is also considering further expansion of the capacity to 23 vessels a year by 2030 to win orders to build oil tankers and other ships, for which it competes with Chinese rivals. The possible expansion may require new docks.
Shipping companies reduced orders for liquefied natural gas (LNG) carriers, putting pressure on the index, as natural gas development projects across the world have been delayed. The move raised expectations of an oversupply of LNG carriers, cutting fares for the tankers.
The company said its operating profit soared by more than five times to 398.4 billion won ($289.3 million) on a consolidated basis in the third quarter from a year earlier as sales grew 24.6% to 6.2 trillion won.
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Source: KED Global
