Korean firm plans Chinese shipyard

Home > Business > Industry

print dictionary print

Korean firm plans Chinese shipyard

STX Shipbuilding Co., the world’s sixth-largest shipbuilder, will lead $84 million in projects to build the first shipyard by a Korean company in China.
The company and two affiliates, STX Heavy Industries Co. and STX Corp., will build the yard and a plant to make ship structures in Dalian by the end of 2008, STX said in an e-mailed statement yesterday.
STX Shipbuilding and other Korean shipyards are expanding abroad to lower costs and increase capacity, as growing trade and higher oil prices drive up demand for vessels. Korea’s shipyards, which won almost half of last year’s orders in the $100 billion ship building industry, have enough orders to keep them busy for more than three years.
“The two ventures in China will help increase our productivity and price competitiveness by maximizing cheaper labor and land,” STX Shipbuilding said in the statement. “We haven’t yet decided on additional investment plans.”
STX Shipbuilding announced its plans to invest in China in September last year. The company sold 12.3 million new shares at 9,400 won apiece to raise funds for the two projects. The shipbuilder and STX Heavy will spend $34 million to set up a plant to produce 250,000 tons of ship structures. Output will later be increased to as much as 500,000 tons.
STX Shipbuilding and STX Corp. will invest $50 million for the yard, which will construct bulk carriers and smaller-sized chemical vessels. At the same time, the shipyard will focus on making bigger, higher-priced ships in Korea.
Log in to Twitter or Facebook account to connect
with the Korea JoongAng Daily
help-image Social comment?
s
lock icon

To write comments, please log in to one of the accounts.

Standards Board Policy (0/250자)