Hanwha Ocean plans to venture into the shipbuilding block supply market in the US as well, “Newbuild prices in the US are more than three times higher than in South Korea,” said Daol Investment’s Choi.“Even after factoring in 1.5 times higher labor costs and lower productivity, the conditions remain favorable for generating solid profits.” TAILORED STRATEGIES FOR SHIP EXPORTSMeanwhile, the Federation of Korean Industries (FKI) on Monday recommended the Korean government and shipbuilders to adopt vessel-specific strategies to capture emerging opportunities from the US fleet expansion plan, which is expected to generate orders for up to 448 ships by 2037.
Once facility expansion and renovations are completed, the shipyard's annual output is expected to rise to between eight and 10 vessels.“One of the US government’s top priorities is fostering the domestic construction of high-value vessels such as LNG carriers,” a Hanwha Group official said.“Given Hanwha Ocean’s expertise in LNG shipbuilding, we’re confident we can construct these vessel successfully in the US.”US shipbuilders have stopped building an LNG vessel since the 1980s, ceding ground to South Korean, Chinese and Japanese firms as technical challenges and high labor costs undercut their competitiveness.
Industry sources estimate that Hanwha would spend more than 100 billion won ($74 million) on the upgrades, including quay expansion, drydock repairs and automation systems.“Philly Shipyard plans to boost productivity by addressing key bottlenecks in its operations, including expanding its painting facility to eliminate process delays,” said Choi Kwang-sik, an analyst at Daol Investment & Securities.
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