Korean shipbuilders expanding into new markets

Korean shipbuilders are diversifying and introducing new advanced shipbuilding technologies to continue growing in a hostile business environment. Samsung Heavy Industries recently completed construction of the world?s largest semi-submersible offshore oil rig, which will be delivered to Seadrill. The platform, named West Eminence, weighs 30,000 tonnes, is 112 metres tall, took two and a half years to build and can drill up to 12,000 metres underwater.

“We have proven our advanced technology by taking care of everything, from design to construction and testing, ourselves,” said Kim Jing-wan, the firm?s vice chairman.

Previously it had been common for the lower part of semi-submersible oil rigs to be built in Korea, while the more complex upper structures were built by European shipbuilders.

Another Korean shipbuilder, STX, recently managed to install a block weighing 6,500 tonnes onto an LNG vessel afloat. Until now the heaviest part that could be installed using a floating crane weighed 5,500 tonnes.

Technology isn?t the only strength local shipbuilders are focusing on to overcome the economic crisis. Samsung?s Vice Chairman Kim said the shipbuilder is diversifying its portfolio, planning to invest in seaborne energy projects, which, Kim said, have been less affected by the economic crisis. Although Korean shipbuilders are known for their long backlogs of orders lasting years, due to the current economic situation some clients are cancelling orders, while new orders are almost nonexistent.

Hyundai Heavy Industries is reducing its reliance on heavy shipbuilding and advancing into other markets such as wind power generators and solar energy projects.