Qingdao Gute Ship Supplies Co., Ltd.

The order has reached a new high, and the Korean shipbuilding industry has recovered from “rebirth”

On the last day of 2018, Daewoo Shipbuilding's seven docks were all started. Samsung Heavy Industries won an order for a $189 million LNG ship, and Hyundai Heavy Industries received a new high in five years.

Thanks to the growth of LNG ship orders, the top three shipping companies in Korea in 2018 – Hyundai Heavy Industries, Daewoo Shipbuilding, and Samsung Heavy Industries received a total of US$26.8 billion, an increase of 34% from US$20 billion in 2017, and 80% in 2016. Compared with the US$100 million, it has surged by 235%. For the Korean shipbuilding industry, the significance of 2018 is very important, and 2019 is a crucial year. It is the "rebirth year" for the Korean shipbuilding industry to rise again.

In 2018, Hyundai Heavy Industries Group received orders of $13.7 billion, which was 104% of the target of $13.2 billion in orders last year. This figure is also the highest in the number of orders received by Hyundai Heavy Industries Group in the past five years since the US$21.2 billion in 2013. At the analysis meeting held in December last year, Hyundai Heavy Industries’ president Jia Sanyu said that as long as the new shipbuilding market maintains its current rising curve, Hyundai Heavy Industries will be able to achieve its performance recovery in 2020.

The CEO of Hyundai Heavy Industries said that the industry downturn and rapid technological advances in the past few years have made the company face unprecedented opportunities and challenges. 2019 is a crucial year for determining the future of modern heavy industry, and vows to regain the glory of the world's first shipbuilding company.

Hyundai Heavy Industries Group announced on January 3 that it will raise the target for this year to $15.9 billion, including $8 billion for Hyundai Heavy Industries, $4.3 billion for Hyundai Sanhu Heavy Industries, and $3.5 billion for Hyundai Tsuyoshi. This year, Hyundai Heavy Industries Group will continue to cut production costs to maintain profitability, and the goal is to turn a profit this year.

Daewoo Shipbuilding received orders of US$6.81 billion last year and completed the adjusted US$6.6 billion order. Compared with the original target of 7.3 billion US dollars, it has also completed 93%. In the middle of this month, Daewoo Shipbuilding is expected to sign a contract with the Indonesian Ministry of Defense for three 1400-ton submarines worth $1 billion, equivalent to nearly 15% of its $18.81 billion in orders for the full year of 2018.

Zheng Shengli, CEO of Daewoo Shipbuilding, said that starting from Indonesia's submarine orders, Daewoo Shipbuilding will increase the number of orders for major ship types such as LNG ships and raise the target for this year's orders. He pointed out that Daewoo Shipbuilding needs to increase investment in environmental protection and energy-saving ship research and development, so as to maintain its competitiveness in the future.

Zheng Shengli said that 2019 will be the "rebirth year" for Daewoo Shipbuilding to "small and healthy company" and recapture the title of "the world's strongest shipbuilding company".

Samsung Heavy Industries received a total of $6.3 billion in orders last year, exceeding its adjusted target of $5.1 billion. Compared with the original $8.2 billion, 77% was completed. In 2019, Samsung Heavy Industries hopes to expand orders for offshore equipment such as oil and gas production equipment and drilling platforms. In the field of offshore equipment, Samsung Heavy Industries ranks first in the world in terms of handheld orders. At present, Samsung Heavy Industries is competing for the orders of the floating production and offloading tanker (FPSO) of Reliance Industries of India, worth more than 2 billion US dollars.