South Korea's Fair Trade Commission says that foreign regulators will likely keep a close eye on the merger between Hyundai Heavy Industries and Daewoo Shipbuilding & Marine Engineering. The new company's market share could weaken competition, notes the commission.
Daewoo Shipbuilding & Marine Engineering is about to be acquired by a competitor, and this has made the yard's employees herald walkouts. The employees fear that the acquisition will result in large-scale layoffs.
In connection with the Stellar Daisy shipwreck case, a South Korean court has rejected an arrest warrant request for a Korean Register surveyor issued by domestic authorities, informs the Korean Register.
11 small and medium-sized shipping companies have applied to the country's government for a state aid scheme in which the state buys ships and leases them back to the shipping companies again, reports Yonhap. The applications pertain ships for a triple-digit million dollar figure, according to the media.
The shipyards in South Korea received the most orders for newbuilds in 2018. This puts the South Korean shipyards back in first place after having been beaten by their Chinese competitors in the past five years, according to numbers from Clarkson Research.
The major South Korean shipbuilders expect to add even more LNG newbuilds to their order books in the coming year. Meanwhile, orders for offshore vessels and rigs are expected to remain low, reports news agency.
Criticism of the South Korean government's subsidies to the country's shipbuilding and shipping sector have grown in scale this year with several massive aid packages. Later this week the OECD will meet to discuss what can be done. Certain countries are allegedly pushing for a tougher approach.
Even though criticism from several western nations is intensifying, the South Korean government has announced a new massive aid package for the country's struggling but vital shipbuilding sector. OECD will review the issue of state subsidies at meeting next week.
For the first time ever, LNG ships look set to account for more than half of the revenue at South Korea's Daewoo Shipbuilding & Marine Engineering. After a profit last year, a new deficit looms in 2019.
In 2018 alone, liner company HMM will receive a triple-digit million dollar figure from the South Korean state, reports media Pulse. South Korea's state aid for shipping companies and shipbuilders is met with fierce criticism from bodies such as the EU.
South Korea's – and thus the world's – largest shipyard has not secured new offshore orders in more than three and a half years, and, in line with the country's two other large shipyards, intense efforts to cut costs are now underway. However, protests and strikes are challenging those measures.
Dissatisfaction is simmering in the South Korean shipbuilding sector, where 12,000 employees have now walked out at Hyundai Heavy Industries. Large-scale layoffs in the offshore unit have triggered the protests.
The South Korean shipbuilder's bottom line took a dive in the second quarter compared to last year, when one-off gains boosted the group's results. And a sale of a loss-making unit will hurt the third quarter figures.