Friday, July 22, 2011

Hyundai-Steel expand Japanese market

South Korea's Hyundai-Steel is now boosting its profitability of thick plates for ship from Japanese market, which requests for complicated specifications.

Hyundai-Steel, which began producing thick plates for ship last April, sealed the contract with one Japanese shipbuilder in H1. Also, additional orders from other three shipyards are planned to be penned in the second half. Three shipyards are now testing Hyundai-Steel's thick plates.

Total supply to four of Japanese shipbuilders amounts at least 10,000t.

Dangjin-based Steel producer has promoted technology exchanges with shipbuilders in Japan after winning orders. Furthermore, Hyundai-Steel is spurring itself to increase orders in Japan where is more price-competitive than other foreign markets.

Hyundai-Steel can produce about 1.5m tons of thick plates in a year and has classified by 10 of classification society in a world for thick-plates products, like rolled steel for general structure, TMCP (Thermo Mechanical Control Process), etc.

Published : July 21, 2011

Source: Asiasis


Keppel inks SGD7.4bn orders

A record order intake has boosted the orderbook of Keppel Corp’s offshore and marine division to SGD 9.1bn ($7.5bn) with deliveries extending into 2014.

Net profit of Keppel Corp for the first half was 7% ahead of the same period of last year at SGD 696m with the second quarter rather better at SGD 385m, a 9.3% improvement on the comparable period of 2011.

Offshore and marine is by far the biggest business activity of the diversified Keppel group accounting for more than half of total revenues and profit.

Offshore and marine had first half revenues of SGD 2.5bn some 14% down on the same period of 2010. The second quarter revenue was 7% down at SGD 1.3bn compared to quarter two last year.

But offshore and marine’s net profit however held up at SGD 475m and SGD 259m for the first half and second quarter respectively, a 6% and 7% increase on the same period of last year.

Keppel Corp is involved in offshore rig design with Keppel FELS building the units, Keppel Shipyard undertaking vessel conversions and repairs while Keppel Singmarine builds offshore support vessels and ice class tugs.

Strong day rates for high specification jack-up rigs continued to drive orders with the offshore and marine business securing SGD 7.2bn of new orders in the first half with the figure for the year to date moving up to SGD 7.4bn.

Keppel Corp chief executive, Choo Chiau Beng, said the order intake included 13 jackups, a semi-submersible and a North Sea compliant accommodation semi-submersible.

Choo said Keppel was readying itself for growing demand for FPSOs. Recently completed projects included the conversion of the 168,000-dwt tanker Lewek Emas (built 1978) into an FPSO of the same name.

Published : July 22, 2011

Source: Asiasis


Hyundai Mipo inks bitumen carriers

Hyundai Mipo Dockyard has reportedly won an order for two large bitumen carriers.

According to overseas media report, Gear Bulk Holding of which stake is owned by Japan's Mitsui OSK Lines has ordered two 19,000-dwt bitumen carriers at the South Korean shipyard.

Delivery is set for 2013 and newbuilding price is yet to be known.

Hyundai Mipo also booked 6,000-dwt bitumen carriers from Vroon of the Netherlands in February this year.

Meanwhile, Gear Bulk Holding is said to be operating a 15,000-dwt bitumen carrier currently.

Published : July 22, 2011

Source: Asiasis


Thursday, July 21, 2011

Wartsila orders increase

Finnish ship engine maker Wartsila announced its second quarter order intake grew by 5% to EUR 1,170 million.

Q2 net sales decreased 8% to EUR 1,036 million, and operating result was EUR 117 million, or 11.3% of net sales.

During the first half semester of 2011, the company won new orders worth EUR 2,149 million, an increase of 8%.

H1 net sales increased 3% to EUR 2,119 million with operating result increasing to EUR 230 million or 10.9% of net sales.

At the end of June the orderbook totalled EUR 3,779 million, down 12% against a year ago.

Ole Johansson, President and CEO said, “The second quarter was good in terms of ordering activity and profitability. While net sales decreased somewhat, the solid order intake paves the way ahead. For the first time since 2008, we booked more new orders than we billed for.

In Ship Power there is positive development in various LNG fuelled vessel markets. Power Plants also received major orders in new markets for gas-based solutions and our “Smart Power Generation” -concept is being recognised. The Services business was stable.

The growth of the global economy appears at risk of slowing down, which may impact decision making for new investments. It may also affect the utilisation of the existing marine fleet.

Due to this uncertainty, as well as the timing of power plant deliveries, we have revised our net sales expectation to a slight decline compared to last year. Our profitability is expected to remain on the guided level.”

Published : July 21, 2011

Source: Asiasis


Sungdong wins new cash


South Korean shipbuilder Sungdong Shipbuilding & Marine Engineering is to get new cash from its creditors.

Korea Eximbank-led creditors group is reportedly lining up an additional cash injection of around hundreds of billion won (hundreds of million dollar) for the shipbuilder, which is fast recovering with a bulk of new orders this year.

As early as next month the injection would be exercised, sources say.

But the creditors are requesting for a strong revival plan such as capital decrease and appointing new CEO.

Sungdong won new orders for 33 ships worth $2bn in the first half, the highest ever order intake with its orderbook now standing at 88 ships worth $5.1bn.

Notably, it succeeded in winning first-ever order for offshore plants like Floating Storage & Offloading Unit and Shuttle Tankers.

Published : July 21, 2011

source: Asiasis


Bangla shipbreaking halts again

Prices of steel products are likely to soar in Bangladesh as the shipbreaking industry, the main source of the metal, is virtually out of operation for more than a year over environmental row, traders say.

The shipbreaking was halted again for indefinite period early this month as the High Court re-imposed a year-old ban which it had lifted in May for two months under certain environmental pre-conditions.

The output of the sector might be the lowest in 2011 as few ships were either dismantled or left half-done due to the ban on ship-breaking, following litigations filed by a leading group of environmentalists.

In Bangladesh, one of the top ship recycling nations from 2004 through 2008, scrapped ships have been the main source of steel to meet the country's requirement of some four million metric tonnes a year.

Published : July 21, 2011

Source: Asiasis


Wednesday, July 20, 2011

Wartsila adds licence agreement

Wärtsilä Corporation, the marine industry's leading solutions provider, and CSSC Guangzhou Marine Diesel Co., Ltd. (GMD), a member of the state-owned China State Shipbuilding Corporation (CSSC) Group, have jointly signed a licence agreement for the manufacture and sale of Wärtsilä 2-stroke engines in China.

It covers the entire engine portfolio with a power range of between 4,300 and more than 80,000 kW per engine. The signing ceremony took place on July 19 in Guangzhou, China and was attended by representatives of both companies, headed by Mrs. Lu Xiaoyan, Vice President of CSSC and Dr. Martin Wernli, President of Wärtsilä Switzerland Ltd.

"China's burgeoning growth in shipbuilding capacity during recent years has stimulated the rapid development of the marine diesel engine market. We are, therefore, delighted to have formed this partnership with CSSC Guangzhou Marine Diesel Engine Co., Ltd, and have every confidence that this agreement will enhance Wärtsilä's presence in this region," said Dr. Martin Wernli, President Wärtsilä Switzerland Ltd.

With the shipbuilding industry increasingly concentrated in Asia, the local manufacture of Wärtsilä's marine engines is a key element in the company's growth strategy. GMD is based in the Panyu District, close to the major Chinese city of Guangzhou and the special administrative region of Hong Kong. Established in 2008, the company has state-of-the art production, testing and workshop facilities making it an ideal partner for Wärtsilä in targeting the Chinese shipbuilding market.

"CSSC and Wärtsilä have been working together for 33 years, going back to July 17, 1978. This co-operation has been a factor in promoting the fast development of China's engine manufacturing industry, leading to a win-win situation for both companies," said Mr. Guo Xiwen, Chief Economist of CSSC.

Wärtsilä expects the first engines to be produced at the end of this year.

Wärtsilä has established a world-wide network of 18 licensees for manufacturing 2-stroke engines. These are located mainly in Asia (Japan, Korea, China, Vietnam), but also in Europe (Croatia, Poland and Russia) and South America (Brazil). The Wärtsilä brand low-speed engines are developed, designed, promoted, licenced, marketed and serviced by Wärtsilä in Switzerland.

The engines are produced by specialized engine manufacturing companies under licence from Wärtsilä. The licensees market, manufacture, test and sell the engines under agreed conditions. Wärtsilä continuously supports its licensees in all phases of production and in their sales projects.

Published : July 20, 2011

Source: Asiasis

Japanese win 120 export ships

Japanese shipbuilders won a total of 15 export orders in June, 10 of which were for handysize or handymax bulk carriers, four for panamax and one for capesize.

The new orders totalled 550,000 gt, almost unchanged since May when Japanese shipbuilders won contracts for 18 vessels.

According to statistics released on July 19th from the Japan Ship Exporters’ Association, June’s new orders bring the year-to-date (January-June) total to 120 vessels amounting to 5.05m gt (2.3m cgt).

The figure is down 2% from the same period of last year, in gt terms.

Around 90% in vessels terms were orders for bulk carriers with small and midsize vessels below panamax took 76%.

During the first half, Japanese built and exported 201 ships or 9.3m gt, down by 7% in gt terms.

Japan’s total orderbook for ships destined for export is 907 ships or 41.9m gt as of June end, of which 310 ships or 14.7m gt are scheduled for delivery this fiscal year, which ends on March 31, 2012.
325 ships or 14.8m gt are scheduled for fiscal 2012, 190 ships or 8.7m gt for fiscal 2013, 80 ships or 3.5m gt for fiscal 2014 and two ships or 90,000 gt for fiscal 2015.

June’s orders were all cash orders, with 57% of shipowners opting to pay in yen.

Around half of the new orders in terms of value were processed through Japanese trading houses.

Published : July 20, 2011

Source: Asiasis


Hyundai Mipo to win PCs

French tanker owner Socatra will declare options for two product tankers at Hyundai Mipo Dockyard in South Korea after investment group Tikehau Capital Partners pumped in cash.

The companies said Tikehau had acquired an unspecified interest in Socatra subsidiary Angelmar Corp through a share capital increase.

It has become the second shareholder in the company, which owns six 37,000-dwt products tankers valued at $280m.

A statement said: “These product tankers are chartered by first class operators for an initial three-year period.

“The capital increase will allow Angelmar Corp to acquire two new similar product tankers to be delivered in October 2012 – January 2013, increasing the fleet to a total of eight vessels.”

Socatra ordered four of its six vessels at Hyundai Mipo Dockyard in March 2010.

That order came with four options attached.

Published : July 20, 2011

Source: Asiasis


Tuesday, July 19, 2011

Big3 Clash Onshore

South Korean big 3 are to compete in the onshore plant market as well as offshore.

Samsung Heavy Industries recently bought a stake in a local power plant equipment maker for KRW 41.5bn ($39m).

Samsung now holds a 27% stake in SeenTec, becoming the largest shareholder in the power equipment maker.

The South Korean shipbuilder intends to use SeenTec's industrial boiler technology for shipbuilding for now but it will expand into onshore plant business in longer term.

Meanwhile, Hyundai Heavy Industries is targeting $3.8bn orders this year in the onshore plant sector.

In particular it is now bidding for Nigeria Brass LNG project, Bahrain Al Dur power plant, etc.

Daewoo Shipbuilding & Marine Engineering is also eyeing the land plant sector as it is moving to buy a local plant equipment maker DKME.

It already signed a LOI with major shareholder of DKME and conducted a due diligence.

Although Daewoo is saying nothing is determined regarding DKME acquisition, an official from DKME said the shipbuilder is very interested in buying DKME.

Published : July 19, 2011

Source: Asiasis


Keppel renames converted FPSO

Keppel Shipyard is on course to deliver a converted FPSO on schedule.

Conversion work on the 255,350-dwt VLCC Bauhinia (ex- Island Bauhinia, built 1988) is coming to a close.

The Singapore shipbuilder clinched the contract from SBM Offshore in early 2010.

The vessel, renamed the Aseng in a ceremony on Saturday, is scheduled to be delivered to joint-partners SBM and Equatorial Guinea’s national oil company GEPetrol in the third quarter of this year.

The Aseng, which can produce 80,000 barrels of oil per day and store 1.7 million barrels of oil, is chartered to Noble Energy for the development of the Aseng field offshore Equatorial Guinea.

Since 2000, Keppel and SBM have completed 13 FPSO/FSO conversion projects together.

Published : July 19, 2011

Source: Asiasis

NK spurs BWTS orders

South Korea's NK announced that it has signed a letter of intent with Japanese large shipyards for the yards to purchase Ballast Water Treatment System (BWTS) over seven LNG carriers in the beginning of this month.

And final purchasing contract is planned to be sealed in mid-July.  

NK speeds up in order, as LNG carriers show steady new orders this year, over 20 ships.

Meanwhile, recent order for BWTS to be onboard VLOCs from Japanese shipbuilder is NK's largest size, NKO3-400 model.

NK expects to sign additional contracts with the same shipbuilder, by selecting standards of NK products.

In the near future, advantages and economic feasibility of NK's systems for large vessels would be more distinguished.

Besides, NK has already closed a BWTS supply contract and is in a process of settling detailed terms for six aframax tankers from Korean big shipbuilder which is in the middle of construction. This contract will lead additional new orders for operating ships, as BWTS is installable without changing main pipes.

Also, NK already won BWTS order for two ships of containership and chemical tanker from Korean shipyard.

Meanwhile, NK is scheduled to hold a promotion event and demonstration for equipment this month, inviting 40 to 50 of shipbuilding related people from Korean shipyards and abroad.

Published : July 18, 2011

Source: Asiasis

Monday, July 18, 2011

S. Korea overwhelmingly No. 1


South Korea regained its status as the world's leading shipbuilding nation in the first half, taking more than half of the global market in terms of orders measured in cgt, the government said Sunday.

In the January-June period, the country's shipyards secured orders for 224 ships, totaling 8.92 million compensated gross tons (CGTs) worth $31.4 billion, according to the Ministry of Knowledge Economy and the Korea Shipbuilders' Association (Koshipa).

The figure represents 53.2 percent of the 16.88 million CGTs worth of orders placed worldwide in the first half of the year.

China, the global market leader from 2009 through 2010, won orders for 258 ships during the cited period, but placed behind South Korea in terms of orders measured in CGTs and value.

Chinese yards secured orders worth $8.8bn that amounted to 5.17 million CGTs in the six-month period taking 30.8% global share.

The orders won by South Korean yards are worth $31.4 billion, already reaching over 90 percent of the $34.8 billion the country secured for the whole of 2010, according to the ministry.

The ministry earlier forecast that exports by the local shipbuilding industry would reach $51.7 billion this year.

"The country's shipbuilding sector maintained the No. 1 place in the world by major shipbuilders focusing on value-added ships although the world's shipbuilding market shrank 10.2 percent (on-year) in the first half," the ministry said in a press release.

In the first half, South Korean shipbuilders grabbed orders for all but seven new drillship orders in the world, along with the only orders for two floating production, storage and offloading (FPSO) vessels and two LNG-floating storage and re-gasification units (LNG-FSRU). Local yards also won orders for 19 new LNG carriers.

"The country secured orders for 69 containerships, each with a loading capacity of over 8,000 twenty-foot equivalent units, in the first half. That accounts for 75 percent of all orders placed in the world for containerships of the same capacity and 65 percent of orders for all containerships in the first six months of the year," it said.

The ministry, however, noted China was still the world's largest shipbuilder in terms of actual ships being launched.

In the first six months of the year, China constructed 511 vessels, totaling 8.36 million CGTs. South Korea built 253 ships, totaling 7.72 million CGTs, down by 6.1% against the same period of last year.

Meanwhile, the ministry said shipbuilding and offshore equipment exports in the first half totalled $32 billion, up 30.1% year-on-year.

In the second half, high oil prices would continue and LNG carrier and offshore plant orders would continue to lead the newbuilding market, it added.

Published : July 18, 2011

Source: Asiasis


Hyundai completes Digital Yard

South Korea's Hyundai Heavy Industries successfully completed building Product Lifecycle Management (PLM) system.

Hyundai BS&C finished the project in cooperation with LG CNS, Siemens PLM Software and its subsidiary Hyundai BS&I in 18 months.
Hyundai's PLM Project which started in January, 2009, is Korean shipyards' the first and largest.

PLM system connected CAD and other technical data with Bill of Materials (BOM) and created integrated data management system.

With this new system, Hyundai will be able to manage supply integratively with BOM, automatize flow of engineering process and correct errors beforehand by sharing information on alteration in design engineering.

Thanks to PLM system, Hyundai is expected to minimize engineering process and realize a Virtual Digital Shipyard which creates the optimal shipbuilding environment, as well.

Published : July 15, 2011

Source: Asiasis


Wartsila sales to fall

Finnish engine maker Wartsila has projected a decline of up to 5% in net sales for 2011 after previously expecting sales to grow by around 5% compared to last year.

The company said that weaker than expected marine systems markets and the timing of power plant delivers would see net sales diminish in comparison to 2010.

The Helsinki-based firm had previously projected that it would grow on its 2010 performance but it still anticipates that operational profitability will be around 11%.

Wartsila said orders for the second quarter of 2011 were “solid” and had increased by 5%. This was matched by a 20% increase on the same quarter in 2010.

Published : July 18, 2011

Source: Asiasis