S. Korean shipyards eye US$53 bln exports in 2009

SEOUL, Nov. 25 (Yonhap) -- South Korean shipbuilders are expected to see their exports rise 23 percent next year on the back of their dominant position in the industry, an industry association said Tuesday.

Local shipbuilders such as Hyundai Heavy Industries Co. are forecast to log
exports of US$53 billion next year, compared with this year's estimated $43
billion, according to the Korea Shipbuilders' Association.
In the first nine months of the year, the shipbuilding sector posted exports of
$30 billion, it said. South Korea is home to the world's top three shipyards --
Hyundai Heavy Industries, Samsung Heavy Industries Co., and Daewoo Shipbuilding &
Marine Engineering Co.
The upbeat forecast came amid concerns that some local shipbuilders are facing a
credit crunch and a decline in shipbuilding orders amid global economic
recession.
For one, Hyundai Heavy, the world's largest shipyard, said last week that its
orders sank 57 percent in October from a year earlier to $325 million on falling
demand for new ships, reflecting a declining shipbuilding cycle.
The company said it did not receive any new orders for ships this month.
"Shipbuilding orders fell recently... But demand for offshore facilities and
others is expected to remain steady," said an official at the association. Major
shipbuilders are financially healthy although some small-and-medium players are
suffering credit shortages, he said.
"There are concerns that the industry will be hit by the global economic
recession, but local shipbuilders have secured enough orders to keep their
dockyards busy for three to four years," he said.
sam@yna.co.kr
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