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DSME picks up three new orders as shipbuilders rebound

Oct 12,2019
A 3,000-ton submarine being built by Daewoo Shipbuilding and Marine Engineering as part of a Korean navy effort to build 3,000-ton submarines. [DAEWOO SHIPBUILDING AND MARINE ENGINEERING]
Daewoo Shipbuilding and Marine Engineering (DSME) said Friday that it has won a total of 1.56 trillion won ($1.31 billion) worth of orders to build a submarine and two liquefied natural gas (LNG) carriers.

The 3,000-ton submarine, ordered by Korea’s arms procurement agency Defense Acquisition Program Administration for 1.11 trillion won, will be used by the Korean navy.

While DSME had previously won orders to build two submarines as part of the Korean navy’s KSS-III program, which aims to build 3,000-ton submarines with Korean technology, the latest order is a second batch order by the navy to develop a 3,000-ton submarine with upgraded combat technologies.

DSME is still building the two submarines, ordered in 2012, and once they are completed, they will become the first 3,000-ton submarines built with Korean technology.

The two LNG carriers are for an American shipping line, DSME said, without revealing the name. The carriers will be built at 174,000 cubic meters (6.1 million cubic feet). DSME said the two ships will be built with its full re-liquefaction system and ME-GI engine that will increase the ships’ fuel efficiency by 30 percent and reduce pollutant emissions by 30 percent.

With the latest addition to its order book, the Korean shipbuilder said it has won $4.27 billion worth of orders to build 20 vessels this year including nine LNG carriers, seven very large crude carriers and four submarines, achieving roughly 51 percent of its annual target of $8.37 billion.

It’s not only DSME that’s increasing its order backlog.

Samsung Heavy Industries announced Thursday that it won orders to build two 174,000-cubic-meter LNG carriers from Malaysian shipping line MISC. The announcement came only two days after the shipbuilder revealed it inked a $920-million deal with Taiwanese shipping line Evergreen Marine Corporation to build six ultra-large container ships.

Thanks to the latest orders, Samsung Heavy has won $5.4 billion worth orders, achieving 69 percent of this year’s $7.8 billion target it said.

Hyundai Heavy Industries said Thursday it signed a deal worth 676.6 billion won with the Defense Acquisition Program Administration to build a next-generation Aegis destroyer. The new destroyer will be 170 meters (558 feet) long, 21 meters wide and weigh 8,100 tons. The shipbuilder said it will be able to sail at a maximum 30 knots. The delivery is scheduled for November 2024.

Hyundai Heavy said it and its shipbuilding affiliates - Hyundai Samho Heavy Industries and Hyundai Mipo Dockyard - have achieved 45 percent of this year’s target by winning orders to build 90 ships worth $7.1 billion so far, including the Aegis destroyer.

Despite the list of orders Korean shipbuilders won early this month, they failed to hold onto the top spots in terms of total size of orders won last month, according to global marine industry tracker Clarksons Research.

While Korean shipbuilders won 320,000 compensated gross tonnage (CGT) orders, Chinese competitors won 740,000 CGT worth orders in September. CGT is commonly used in the shipbuilding industry as an indicator of the amount of work that is necessary to build a given ship.

Korean shipbuilders had kept the first place spot for four months from May through August, but failed to do so in September.

As for accumulated orders this year until September, China took the lead with 5.98 million CGT, followed by Korea with 5.27 million CGT and Japan with 1.96 million CGT orders.

BY KIM JEE-HEE [kim.jeehee@joongang.co.kr]


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