S. Korean shipbuilders relegated to 3rd spot in February orders

S. Korea Yard

South Korean shipyards stood at third place in terms of new orders secured last month, from the top slot the previous month, industry data showed on Wednesday.

According to the data compiled by global research firm Clarkson Research Institute, Korean shipyards clinched new orders worth a combined 160,000 compensated gross tons (CGTs) last month to build five ships.

Italy came first with 610,000 CGTs in new orders, or 6 ships, followed by China with 250,000 CGTs or 14 ships, the data showed.

Last month, a total of 1.21 million CGTs in ship orders were placed, compared to 630,000 CGTs in January.

The order backlog held by South Korean shipyards came in at 18.25 million CGTs last month, following China’s 28.2 million CGTs and Japan’s 18.85 million CGts, the data showed.

The shipbuilding industry, once regarded as the backbone of the country’s economic growth and job creation, has been reeling from mounting losses caused by a fall in new orders, order cancellations and increased costs.

The shipbuilders have drawn up sweeping self-rescue programs worth some 11 trillion won in a desperate bid to overcome the protracted slump and mounting losses.

Last year, Hyundai Heavy swung to the black, while the two other shipyards continued to suffer losses.

Source: Yonhap

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