Korean shipyards left struggling as deep-sea strategy backfires
Vessel makers may show billions of dollars in losses when they report earnings
Seoul
THE deep-ocean strategy is coming back to bite South Korean shipyards.
Hyundai Heavy Industries Co, Daewoo Shipbuilding & Marine Engineering Co and Samsung Heavy Industries Co - South Korea's Big Three shipbuilders - ventured into offshore oil rigs starting around 2010. The goal was to avoid direct competition with China, where inexpensive labour could churn out low-profit tankers at cheaper rates. With oil prices climbing towards US$100 a barrel, offshore rigs seemed like a savvy bet.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Transport & Logistics
Toyota is investing US$1.4 billion to build another all-electric SUV in US
Airbus net profit soars 28% in first quarter
AirAsia discloses new listing plans under RM6.8 billion units merger
Baltimore’s trapped ships start leaving as new channel opens
S&P slashes Boeing credit outlook as rating hovers above junk status
Honda to spend US$11 billion on EV strategy in Canada