Daewoo Shipbuilding ups target by $6 billion

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Daewoo Shipbuilding ups target by $6 billion

Daewoo Shipbuilding & Marine Engineering Co., the world’s third-largest shipyard, boosted its target for this year’s orders to $17 billion, a 55 percent increase from a previous projection.
The shipbuilder had already met its earlier full-year target of $11 billion after recently winning container-ship orders worth $1.8 billion from two buyers in Europe, the Seoul-based company said yesterday in an e-mailed statement.
The world’s three largest shipbuilders, all based in Korea, may exceed last year’s record for new contracts as shipping lines buy vessels to bring more raw materials to China and take finished goods to the United States and Europe. About 90 percent of global trade moves by sea.
“In the second half, we expect to continue receiving orders for higher-end products including container vessels and offshore platforms,” said Nam Sang-tae, president of Daewoo Shipbuilding, in the statement.
Container vessels account for $6 billion, or 55 percent, of the contracts secured by the company so far this year, according to the statement. Daewoo Shipbuilding plans to spend 80 billion won ($87 million) by 2009 to expand facilities for container-ship building.
The European orders disclosed in yesterday’s statement are for 13 vessels that will be delivered by March 2011.
Daewoo Shipbuilding said last month it won $3 billion of contracts in June, a record for monthly new orders by a single shipbuilder. Shares in the company have surged 99 percent this year, compared with the 30 percent advance by the benchmark Kospi index. Bloomberg
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