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  Korea Report - January 2016
  Author : Hwang & Co     Date : 16-02-04 18:15     Hit : 26089    
   Korea Report - January 2016.pdf (790.8K), Down : 11, 2016-02-04 18:15:51

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Korea Report - January, 2016.


According to ASIASIS, Korea¡¯s main shipbuilders are aiming to win new ship and offshore plant orders worth around $45 bil in total in 2016, while stagnation will continue in global shipbuilding industry and offshore plant market amid low oil prices.


HHI has set a goal of winning new orders worth approximately $15.7 bil in total this year. By its business division, the figure is divided into $8.468 bil in shipbuilding ($8.35 bil set in 2015) and $3.2 bil in offshore & engineering ($5.3 bil set in 2015). This year¡¯s order target of HSHI is $4 bil ($3.8 bil set in 2015). Hyundai aims to deliver 76 newbuildings.


HMD set the target of $3 bil (60 units) in 2016, similar to 2015¡¯s. The number of vessels it plans to deliver is 68 units.


SHI and DSME have not made related announcement yet. However, both are said to have their order targets at some $10 bil, respectively. In 2015, SHI could manage 67% ($10 bil) of its yearly aim of $15 bil. DSME managed around 35% ($4.5 bil) on the way to $13 bil, its yearly target.


Hanjin HIC have set a goal of winning newbuildings worth a total of $1.8 bil in 2016 (23 units) including its Yeongdo Shipyard and Subic Shipyard. However, the target seems to be flux because creditors of Hanjin have recently decided on a plan to implement co-management (voluntary agreement) process. STX is expected to promote its business under a target of winning 20-25 orders (around $1.3 bil) even though it has yet to establish the exact one. Sungdong is targeting to win about 30-40 units (mainly with mid and large-sized commercial ships) worth around $1.85 bil for this year. Daesun aims to win a total of 12 newbuildings worth $334 mil. It is expected to concentrate on winning 5-25K chemical tanker and 1,000-2,600 teu containership. Daehan set a goal of winning over 12 newbuildings (about $400 mil) for 2016, planning to control its product mix flexibly. SPP, which has been in the process of M&A, has not made any official announcement. Considering that its Sacheon shipyard has delivered 18-20 newbuildings annually, SPP is expected to set a similar level of order target (around $600 mil), particularly with MR product/chemical tankers.



TOPICS.

 

NKorea conducted a hydrogen bomb test on Jan 6 (p.2)

China maintained policy to settle the issue through ¡°dialogue,¡± while SKorea, USA and Japan seek tougher punitive measures for Pyongyang (p.3)

Beer emerged as SKorea¡¯s most popular liquor by sales (p.4)

Global hallyu fan club members surpassed 35 mil across 86 countries (p.5)

Asian Infrastructure Investment Bank inaugurated (p.7)

SKorea¡¯s national debt is expected to exceed $496 bil for the first time in Feb (p.8)

SKorea¡¯s economy grew 2.6% in 2015, the lowest in three years (p.8)

Korean companies are to rush to explore business opportunities in Iran (p.10)

Performance of conglomerates in 2015 (p.11)

Korean shipbuilders are aiming for orders worth $45 bil in total in 2016 (p.17)

SK E&S reduced its order to 2 x 170K cbm LNG carriers at HHI (p.19)

Creditors of Hanjin HIC plans to discuss early fund injection of KW130 bil ($108 mil) (p.21)

IRISL and SPP resumed new building talks (p.22)

Samla Midas entered in a sole bid for the sale of SPP (p.22)

China¡¯s Zhejiang Xiaoke Holding is the new investor for Samjin Shipbuilding (p.22)

HMM is in negotiations with Hahn & Company for sale of its bulk shipping business (p.23)

KSS posted operating profit of KW29.7 bil ($24.4 mil) (p.23)

 

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