Marine Log - December 2008 - (Page 17) WORLDSHIPBUILDING SCREECHING HALT T he global financial crisis has quickly quenched ship owner’s thirst for new ships. There is perhaps no better example than the recent fortunes of the world’s largest shipbuilder, Korea’s Hyundai Heavy Industries. HHI reported that its orders sank 57% in October from a year earlier. In October, HHI received Samsung Heavy Industries has orders worth $325 million as secured a $1 billion for a 220,000m3 compared with $758 million LNG FPO for Flex Ltd. in the same month a year earlier. HHI said it did not receive new orders for ships this on the total export tonnage of INCREDIBLE RUN Of course, the last few month. Contracts for marine 19 million gt booked in the years have been an incredible engines fell 99% to $2 million first ten months of last year. last month and those for conSo what strategies are run for shipbuilders. Orders struction equipment fell 35% shipbuilders considering in were placed for 93 million dwt to $169 million, it said. Orders the wake of the financial ships in 2005, 172 million dwt for offshore platforms more unrest? One balloon floated in 2006 and 246 million dwt than doubled to $15 million, by China, which wants to in 2007. As Dr. Martin Stopaccording to Hyundai Heavy. overtake Korea as the leading ford, Managing Director of The financial turmoil has shipbuilding nation, is that it Clarkson Resarch, said earlier also made Korean banks might not demand down pay- this year, ships had never been ordered in such volumes reluctant to extend financing ments from ship owners. for orders, making things One of the conclusions at a before. At the start of 2008, more more difficult for Korean ship- conference organized by the yards. Korean Maritime Regis- than 10,000 ships were on Japanese shipter of Shipping last order, so shipyards worldwide builders are feelmonth in Seoul was still have ample backlogs. HHI orders One of those with strong ing the pinch, that shipowners sink by too. The Japanbuilding high sales in the third quarter was ese Ship quality vessels Korea’s Samsung Heavy Exporters Assowould continue to Industries (SHI), which postciation reported prosper, particular- ed record-high sales revenue in October that in October ly in the current of 2.596 trillion won—a jump Japanese yards took environment of ever of 16% over the same period in the previous year—and in export orders for just 11 increasing regulation. ships totaling 571,810 gt. Specific issues facing the operating profit of 142.5 bilThat compares with 43 Korean builders—and echoed lion won. SHI said sales were proexport ships totaling 2.2 mil- in many yards across Asia— lion gt the previous month. were highlighted. Ship- pelled, in part, by the conIn October 2007, Japanese builders are concerned with struction of more “high valueyards recorded orders for 64 the 255% increase in the price added” ships, as well as proexport ships totaling more of steel plate (since 2002) and ductivity enhancements that than 3.5 million gt. a shortage of skilled workers. enabled it to produce ships at This year, as of the end of More than 119,000 skilled smaller sites. One of those high valueOctober, total Japanese ship workers were employed in the export orders total 416 ships main Korean yards and the added ships ordered during and 18.6 million gt. That is requirement was growing the third quarter was the still ahead of the January year-on-year. Many yards world’s first LNG-FPSO for through October 2007 total of were now relying on subcon- U.K.-based Flex LNG. LNG-FPSO will cost over 411 ships, but down slightly tractors. the off wire Washburn & Doughty rebuild Washburn & Doughty, East Boothbay, Maine, is bouncing back nicely, following the devastating fire this past summer that destroyed its main fabrication building. Sheridan Construction, Fairfield, Maine, began erecting steel for Washburn & Doughty’s new 225 ft x 155 ft fabrication building. Designed with two construction bays, the 42,000 ft2 facility will accommodate vessels up to 200 ft long by 50 ft wide. The East Bay is expected to be completed by the end of this month. KeppelAMFELS survives hurricanes This past summer, Keppel AMFELS, Brownsville, Tex., rode out Hurricanes Dolly and Ike, with minimal disruption of its operations, thanks to lessons learned during Hurricane Katrina in 2005. A hurricane preparedness and recovery management plan allowed the facility to be well prepared for the two hurricanes, which struck in July and September, respectively. As a result, the yard was able to restart operations within days of both hurricanes. It delivered Scorpion Offshore’s fourth jackup rig well ahead of schedule on Sept. 5, earning a $1.35 million bonus. continued on p.18 57% www.marinelog.com DECEMBER 2008 MARINE LOG 17 http://www.marinelog.com
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