South Korean shipping industry in problems
Further losses for Korea yards and HMM
The South Korean shipping industry continues to write deep red numbers. Affected are the shipyards and the largest shipping line in the country.
"Unsuccessful restructuring attempts" have led to the Daewoo (DSME), Hyundai (HHI) and Samsung (SHI) and container carrier Hyundai Merchant Marine (HMM) shipyards having made some losses last year, the South Korean news agency Yonhap reports by reference on "industrial data". As a result, the situation has worsened in some cases.
Samsung Heavy Industries is facing huge problems as other South Korea's shipbuilding companies.
The shipyards continue to struggle with the consequences of the global crisis, despite some respectable successes and new orders from the large ship segment. Even state subsidies have apparently not helped.
The giant Daewoo Shipbuilding and Marine Engineering has reportedly accumulated a cumulative loss of approximately $ 6.5 billion between 2012 and 2016 alone. Competitor Hyundai Heavy Industries reports a loss of approximately $ 88 million in 2017 after a $ 15 million gain in the prior year. Samsung Heavy Industries slumped even lower to $ 319 million, down $ 90 million. The operating loss even amounts to $ 491 million (2016: $ 138 million). The yard was recently able to obtain orders from BP and Evergreen. However, one wants to collect new capital to defuse the situation.
Hyundai Merchant Marine (HMM) continues to expand its network of terminals by acquiring the former Hanjin terminal in Kaohsiung
In the global market for container liner shipping, only the shipping company Hyundai Merchant Marine is left for South Korea after the bankruptcy of Hanjin. The Korea Line also has ambitious plans, but further development is not yet in sight. Politicians attach great importance to the survival of HMM. Recently, growth plans and new construction projects had been published.
According to the Yonhap report, the carrier has to endure a bad year in 2017, despite state support. The losses would have increased from $ 453 million in 2016 to $ 1.1 billion, they say.