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DSME Closes Backlog Gap with #1 Hyundai Heavy Industries

DSME ShipyardAccording to Clarkson, a British market survey institute that focuses on shipbuilding, on April 21, the Okpo Shipyard of Daewoo Shipbuilding & Marine Engineering (DSME) placed first among single dockyards in the world in March in the rankings of compensated gross tonnage (CGT) in an accumulated order backlog, with 8.155 million. The shipyard has maintained the top spot for five straight months after the end of November last year. Also, Geoje Shipyard of Samsung Heavy Industries pushed Ulsan Shipyard of Hyundai Heavy Industries into third place.

Samsung Heavy Industries‘ shipbuilding yard recorded 5.016 CGT in its backlogs in March, moving up one spot to number two from the previous month. On the other hand, Ulsan Shipyard of Hyundai Heavy Industries was the only shipyard among top three to show a decrease in the accumulated order backlogs. It took third place with 4.896 CGT.

The reason why the ranking changed was that Ulsan Shipyard of Hyundai Heavy Industries won fewer orders, even though all of the top three had difficulties in winning orders.

As Samsung Heavy Industries received orders worth US$2.3 billion (2.49 trillion won) this year, including 10 container ships, six oil tankers, and two LNG carriers, the company topped the list. Also, DSME won a contract worth US$1.4 billion (1.52 trillion won), including six LNG carriers and two very large crude carriers (VLCC), showing the similar result of US$1.42 billion (1.54 trillion won) during the same period in the previous year.

However, Hyundai Heavy Industries recorded accepted orders of 12 LNG carriers worth US$900 million (974.25 billion won) in the first quarter this year. The figure is a 74 percent decrease from the same period last year.

Even though Hyundai Heavy Industries‘ Ulsan Shipyard ranked 3rd in the accumulated order backlog by each dockyard, the company is still number one by shipbuilding group.

By shipbuilding group, Hyundai Heavy Industries, which runs Hyundai Samho Heavy Industries and shipyards in Ulsan and Gunsan, has maintained its top position with 9.542 CGT, or 214 ships.

However, as the current number two, DSME, is closing the gap between Hyundai Heavy Industries in backlogs with 8.974 CGT or 155 ships, the ranking can change.

By country, China came in first with 43 million CGT or 2,367 ships, followed by Korea with 32.7 million CGT or 842 ships, and Japan with 19.8 million CGT or 930 ships. By CGT, China has a 39 percent share of the global accumulated order backlogs, while Korea and Japan have 29 percent and 18 percent, respectively.

The Original Posted by Jung Suk-yee / BusinessKorea

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