Korean shipyards raise 2018 order targets
Daewoo Shipbuilding & Marine Engineering set its annual order target for next year at over $5 billion. This year, it bagged
$2 billion in new orders.
“Business conditions are improving on the back of a recovery in the global economy and stable oil prices,” an industry source said.
But local shipyards are still struggling with a decline in the order backlog as they have suffered a sharp drop in new orders in the past two years.
The shipyards have been selling noncore assets, reducing workforces and implementing other cost-cutting measures to tide over a protracted industrywide slump.
Earlier this month, Hyundai Heavy decided to sell 1.3 trillion won (US$1.22 billion) worth of new stocks to improve its financial status.
The company has already carried out 3.5 trillion won worth of self-rescue measures.
Samsung Heavy has completed 65 percent of its self-rehabilitation plan worth 1.45 trillion won, with Daewoo Shipbuilding finishing 42 percent of its 5.3 trillion-won self-rescue plan.
By Ahn Sung-mi and news wires (firstname.lastname@example.org)