HANSA 10-2023

SCHIFFSTECHNIK | SHIP TECHNOLOGY
Now that we have a new owner and
branding, our customers are gradually recovering
their confidence in us. We have
developed designs for boxships of up to
3,000 TEU, because we aren’t able to construct
larger vessels. However, we have
yet to win any boxship orders, as this segment
is now struggling.«
Daehan Shipbuilding = DH
Expanding its shipbuilding footprint, KH
Investment acquired another struggling
South Korean shipbuilder, Daehan Shipbuilding,
renaming the latter DH Shipbuilding.
Hanjin Heavy = HJ Shipbuilding
HJ Shipbuilding & Construction, previously
Hanjin Heavy Industries & Construction
(HHIC), was founded as Chosun
Heavy Industries in 1937 and was acquired
by the Hanjin group after being
liquidated in 1990.
In January 2016, after years of poor
performance, HHIC asked its banks, led
by KDB, to get involved in »joint management«
to improve its financial structure.
By then, HHIC’s yard in Subic Bay
in the Philippines had become indebted
to the tune of $ 1.3 billion.
In December 2021, a consortium led
by construction firm Dongbu Corporation
acquired a 66.85 % stake in
HHIC from KDB, resulting in the shipbuilder
being renamed. In April 2022,
US investment fund Cerberus Capital
Management acquired HHIC’s Subic
Bay yard.
Continuing its business from its Busan
yard, HJ Shipbuilding’s rebirth coincided
with the Covid-19-fuelled container
shipping boom, and the shipbuilder
clinched 10 boxship orders from MPC
Container Ships, Navios Maritime
Partners and HMM. That said, the boom
has faded, and HJ Shipbuilding has yet to
win any orders for other vessel types,
though HANSA was informed that the
shipbuilder has created tanker designs
and is hoping to attract more customers.
HD Hyundai
Reflecting the sharp contrast in the fortunes
of the large and smaller South Korean
shipbuilders, the country’s largest
shipbuilder, HD Hyundai is apparently
negotiating with Cerberus to acquire the
Subic Bay site, where it is now conducting
ship repairs and maintenance. Over the
last decade, HD Hyundai has turned its attention
towards building engines using
eco-friendly fuels, such as LNG and methanol,
to stay ahead of competition, primarily
Chinese shipbuilders. Over 60 % of
HD Hyundai’s newbuilding orders, which
now top $US26 billion, are based on ecofriendly
fuels. Last year, HD Hyundai
tested an engine that is dual-propelled
with LNG and hydrogen to quicken the
development of hydrogen-powered ships.
Their larger land area means that
South Korea’s three largest shipbuilders,
HD Hyundai, Samsung Heavy Industries
and Hanwha Ocean can construct more
sophisticated vessels like LNG carriers
and large boxships. Their orderbooks are
therefore, full until 2027.
Hanwha acquired shipyyard capacity of Daewoo Shipbuilding and Machine Engineering
Hanwha
A new heyday? South Korea
promises comprehensive shipyard
aid
The government in South Korea
wants to continue to provide
massive support for the
country‘s shipyards.
In South Korea, shipbuilding is
considered an enormously important
segment for the economy,
the labour market and society.
The government‘s support
for the shipyard industry is correspondingly
high. This is to remain
so in the future. During a
visit to the shipyard formerly
known as Daewoo Hanwha
Ocean in Geoje, the South Korean
finance minister recently
emphasised that Seoul will spare
no effort »to comprehensively
support the shipbuilding sector
so that it can develop into a new
growth engine.«
According to a report by the
Yonhap news agency, Choo
Kyung-ho is betting on a new
upswing in the maritime sector:
»Hopes are growing for a second
heyday of the shipbuilding industry.«
The government wants
to support the sector financially,
by promoting experts and
through research and development
projects to the best of its
ability.
In the first half of 2023, South
Korean ship exports totalled
$ 9.2 billion, up 11.9 % from a
year earlier. The orderbook
reached 38.8 million compensated
gross tonnes (CGT),
the highest level in 12 years, according
to the Ministry of Economy
and Finance.
The visit to the shipyard was to
explain the government‘s vision
for adapting to the rapidly
changing environment driven by
the shift towards environmental
friendliness and digitalisation in
the industry. Based on the visit,
the government of South Korea
plans to present detailed
measures to support the shipbuilding
industry this year.
HANSA – International Maritime Journal 10 | 2023
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