ID :
88678
Mon, 11/09/2009 - 16:12
Auther :
Shortlink :
https://oananews.org//node/88678
The shortlink copeid
S. Korea set to help struggling shipbuilders
SEOUL, Nov. 9 (Yonhap) -- State-run financial institutions will increase their
support to shipyards and shipping lines struggling to cope with the fallout from
the worldwide economic slump, the government said Monday.
The Ministry of Knowledge Economy said the global economic crisis has caused new
orders won by local shipyards to fall 90 percent on-year from January through
September, making it necessary to take active measures to prop up the sector.
South Korean companies like Hyundai Heavy Industries Co., Samsung Heavy
Industries Co. and Daewoo Shipbuilding & Marine Engineering Co. won 47 new orders
in the first nine months of this year compared to 655 vessels won for the whole
of 2008.
According to Clarkson Research, South Korean shipyards won 1.33 million
compensated gross tons (CGT) of ships up till September, compared to 2.42 million
CGTs by Chinese rivals.
"Under the action plan, the Export-Import Bank of Korea will move to increase
shipbuilding-related financing, while Korea Export Insurance Corp. plans to
introduce a package support coverage program that can reduce the burden on
shipping lines," Cho Seok, deputy minister at the ministry said.
He said up to 500 billion won (US$430 million) will be offered as loans to
shipyards to build and launch new ships, with efforts made to link direct loans
with greater export insurance coverage that can help shipping companies place
orders for new vessels.
"The financial support will be extended to both local and foreign companies
without discrimination," the official said.
He said creditors of eight mid-sized shipyards undergoing workout programs plan
to get these companies to move away from building complete ships and to become
components manufacturers.
"These companies had actually built key components in the past before they tried
to become full-fledged shipyards," he said, adding that Seoul is pushing for
year-round restructuring efforts for the whole shipbuilding industry to deal with
current overcapacity.
yonngong@yna.co.kr
(END)
support to shipyards and shipping lines struggling to cope with the fallout from
the worldwide economic slump, the government said Monday.
The Ministry of Knowledge Economy said the global economic crisis has caused new
orders won by local shipyards to fall 90 percent on-year from January through
September, making it necessary to take active measures to prop up the sector.
South Korean companies like Hyundai Heavy Industries Co., Samsung Heavy
Industries Co. and Daewoo Shipbuilding & Marine Engineering Co. won 47 new orders
in the first nine months of this year compared to 655 vessels won for the whole
of 2008.
According to Clarkson Research, South Korean shipyards won 1.33 million
compensated gross tons (CGT) of ships up till September, compared to 2.42 million
CGTs by Chinese rivals.
"Under the action plan, the Export-Import Bank of Korea will move to increase
shipbuilding-related financing, while Korea Export Insurance Corp. plans to
introduce a package support coverage program that can reduce the burden on
shipping lines," Cho Seok, deputy minister at the ministry said.
He said up to 500 billion won (US$430 million) will be offered as loans to
shipyards to build and launch new ships, with efforts made to link direct loans
with greater export insurance coverage that can help shipping companies place
orders for new vessels.
"The financial support will be extended to both local and foreign companies
without discrimination," the official said.
He said creditors of eight mid-sized shipyards undergoing workout programs plan
to get these companies to move away from building complete ships and to become
components manufacturers.
"These companies had actually built key components in the past before they tried
to become full-fledged shipyards," he said, adding that Seoul is pushing for
year-round restructuring efforts for the whole shipbuilding industry to deal with
current overcapacity.
yonngong@yna.co.kr
(END)
