The three major domestic shipbuilders—HD Korea Shipbuilding, Hanwha Ocean, and Samsung Heavy Industries—announced on Oct. 2 that they had secured shipbuilding orders worth over 2 trillion won in a single day. This marks the first time since 2008 that these shipbuilders have achieved such a milestone, reflecting a significant resurgence in the industry, reports Cyprus Shipping.
LNG-FSRU
Hanwha Ocean received an order for one LNG-FSRU (Floating Storage and Regasification Unit) worth 545.4 billion won from an Asian shipowner. HD Korea Shipbuilding signed contracts to build two ultra-large ethane carriers (ULEC) with an Asian shipping company, two liquefied petroleum gas (LPG) carriers with an Oceania shipping company, and one LNG bunkering vessel, totaling 881.4 billion won.
Considering the increase in demand for LNG and the LNG projects under development, Samsung Heavy Industries expects orders for new LNG carriers to remain steady at around 70 vessels. A company official commented, “In addition to the consistently ordered LNG carriers, we expect additional orders centered around floating LNG (FLNG) facilities, where we have overwhelming competitiveness. We will also continue to develop eco-friendly technologies to dominate future new product markets.”
Cyclical booms and busts
The shipbuilding industry has experienced cyclical booms and busts, with the last significant boom occurring in 2008. The current resurgence is driven by technological advancements in shipbuilding, such as the development of LNG-FSRUs and ULECs, which are in high demand due to their efficiency and eco-friendliness. The rising prices of new ships have also contributed to the profitability of shipbuilders, allowing them to be selective about the projects they undertake.
The competitive landscape of the shipbuilding market, particularly the dominance of South Korean shipbuilders in constructing high-value-added ships, has enabled these companies to secure large orders.
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Source: Cyprus Shipping
